QUESTION 7 On January 1, 2020, Martsch Corp. purchased 300,000 of the 1,000,000 outstanding shares of Bee Thousand Inc.'s common stock for $15 per share. Because this investment gives Martsch significant influence over Bee Thousand, Martsch uses the equity method to account for it. During 2020, Bee Thousand declared and paid total dividends of $200,000 and reported net income for the year of $750,000 At December 31, 2020, the fair value of Bee Thousand stock is $16 per share. QUESTION 9 Refer to the information in question #7. But now assume that Martsch elects the fair value option to account for the investment in Bee Thousand (i.e., instead of using the equity method). Ignoring tax effects, how much would the investment in Bee Thousand affect Martsch's reported income on its income statement for 2020? $60,000 increase $165,000 increase $225,000 increase $285,000 increase $360,000 increase $525,000 increase