Sports International purchased $1,400$ shares of stock in The Gaming Warehouse for $$20$ per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $$22$ per share. How would the change in stock price affect Sports International's net income under the equity method?

Multiple Choice

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Increase net income by $$30,800.$

Increase net income by $$28,000.$

Increase net income by $$2,800.$

No effect.