Sports Spectacular purchased 1,200 shares of stock in The Athletic Warehouse for $40 per share. The investment is properly recorded using the equity method. By the end of the year, the stock price has increased to $42 per share. How would the change in stock price affect Sports Spectaculars net income under the equity method?

Increase net income by $50,400.

No effect.

Increase net income by $2,400.

Increase net income by $48,000