On January 2, 2018, Howdy Doody Corporation purchased 16% of Ranger Corporation's common stock for $57,000. Ranger's net income for the years ended December 31, 2018 and 2019, were $12,000 and $56,000, respectively. During 2018, Ranger declared and paid a dividend of $67,500. On December 31, 2018, the fair value of the Ranger stock owned by Howdy Doody had increased to $68,000. How much should Howdy Doody show in the 2018 income statement as income from this investment?

Multiple Choice

• $17,000.

• $11,000.

• $21,800.

• $10,800.