Starting from year 2010, Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2011 and paid dividends of $80,000 on October 1, 2011. The fair value of Traces stock has not been changed during 2011. How much income from this investment should Gaw included in its Income Statement for year 2011?

$16,500

$80,000

$50,000

$12,000