QUESTION INFORMATION: On January $1,2023,$ Meyer Company purchased $35\%$ of Tressel Company for $$81,000$ and accounted for it as a significant influence equity investment $($SIEI$).$ During $2023,$ Tressel reported net income of $$9,500$ and paid dividends of $$4,300.$ The fair value of Mey $y\text{'}$s SIEI in Tressel at December $31,2023$ was $$84,900.$

QUESTION TO ANSWER: If Meyer elects the fair value option to account for its SIEI in Tressel, the increase in Meyer's $2023$ pretax income related to this investment is $

$$4,830$

Answer

$$5,405$

$$3,325$

$$1,820$

$$1,505$