This question has two parts.

Cost of Investment	$100
Fair value of investment at end of the year	$130
Dividends received from investment over the year	$20
Total net income of investee over the year	$100
Percentage of voting shares of investee owned by investor	40%
Total income effect for the year	?

Part 1

What is the total effect on net income for the year for an investor for its passive-level investment?

Part 2

What is the total effect on net income for the year for an investor for its significant influence investment?