The Mason Company acquired a 25% interest in Laser Enterprises for $3,200,000 and appropriately applied the equity method. During the first year, Laser reported net income of $424,000 and paid cash dividends totaling $40,000.

What amount will The Mason Company report regarding its Laser investment at the end of the first year on its Income Statement?

Select one:

a. Net investment earnings totaling $96,000

b. Investment earnings totaling $125,000

c. Investment earnings totaling $106,000

d. Dividend income totaling $10,000