On January 2, 2020, Howdy Doody Corporation purchased 18% of Ranger Corporation's common stock for $54,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $11,000 and $54,000, respectively. During 2020, Ranger declared and paid a dividend of $63,500. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $72,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?

Multiple Choice

• $11,430.

• $18,000.

• $29,430.

• $24,000.