On January 2, 2021, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. During 2021, Ranger had net income of $100,000 and declared and paid a dividend of $60,000. On December 31, 2021, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2021 income statement as income for this investment?

Quiz Saved Help Save & E On January 2, 2021, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. During 2021, Ranger had net income of $100,000 and declared and paid a dividend of $60,000. On December 31, 2021, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2021 Income statement as income from this investment? Multiple Choice $26,000 $7,200 $20,000 $27,200