On July 1, ( 20 imes 1 ), Sanchez Corporation acquired 3,000 shares ( ( 20 % ) ownership) of Beal Corporation common stock at ( $ 40 ) per share plus brokerage fees of ( $ 600 ). The investment of ( $ 120,000 ) was ( $ 6,000 ) greater thail ( 20 % ) of the equity of Beal because inventory was understated by ( $ 30,000 ). Beal reported net income of ( $ 270,000 ) for the year and paid dividends of ( $ 2 ) per share at the end of each quarter. The market value of the Beal shares is ( $ 42 ) per share at December ( 31,20 imes 1 ). Under the fair value method, what would the company report in the ( 20 imes 1 ) income for this investment?

On July 1, 201, Sanchez Corporation acquired 3,000 shares ( 20% ownership) of Beal Corporation common stock at $40 per share plus brokerage fees of $600. The investment of $120,000 was $6,000 greater than 20% of the equity of Beal because inventory was understated by $30,000. Beal reported net income of $270,000 for the year and paid dividends of $2 per share at the end of each quarter. The market value of the Beal shares is $42 per share at December 31,201. Under the fair value method, what would the company report in the 201 income for this investment