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Orange Company holds a 45% equity stake in Yellow Company. Yellow Company reported net income of $5,000,000 this year. It declared and paid dividends of

Orange Company holds a 45% equity stake in Yellow Company. Yellow Company reported net income of $5,000,000 this year. It declared and paid dividends of $1,200,000. By what amount should Orange Company adjust net income in the operating section of its cash flow statement under the indirect method?

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