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The Stockton Company acquired a 25% interest in Fort Enterprises for $3,200,000 and appropriately applied the equity method. During the first year, Fort reported net

The Stockton Company acquired a 25% interest in Fort Enterprises for $3,200,000 and appropriately applied the equity method. During the first year, Fort reported net income of $424,000 and paid cash dividends totaling $40,000. What amount will The Stockton Company report regarding its Fort investment at the end of the first year on its Income Statement?

Investment earnings totaling $106,000

Investment earnings totaling $125,000

Net investment earnings totaling $96,000

Dividend income totaling $10,000

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