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Tinker Co. owns 25% of the common stock of Harbor Co. and uses the equity method to account for this investment. During 2014 ,Harbor reported

Tinker Co. owns 25% of the common stock of Harbor Co. and uses the equity method to account for this investment. During 2014 ,Harbor reported income of $120,000 and paid dividends of $40,000.Harbor owns a building with a useful life of twenty years which is undervalued by $80,000. During 2014 how much income should Tinker recognize related to this investment?

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