Use the information below to answer questions vi and vii below:-

On January 1^st.2019, X Company acquired 25% of the common shares of Y Company, giving it significant influence.At that time Y Company's financial statements included common shares of $250,000 and retained earnings of $1,350,000, and the goodwill associated with the share acquisition was $150,000.There was no difference between the book value and fair value of Y's identifiable assets and liabilities.

vi.During 2019, Y had net income of $100,000 and paid dividends of $40,000.An evaluation of goodwill at the end of 2019 indicated no goodwill impairment since the date of acquisition.X's investment in shares of Y would have which of the following account balances at December 31,2019?

a.$40,000

b.$50,000

c.$565,000

d.$610,000.

vii.During 2020, Y had net income of $200,000 and paid dividends of $60,000.An asset valuation test at the end of 2020 indicated that Y's goodwill had become impaired by 20%.Which of the following best represents X's investment income from the investment in Y for 2020?

a.$ 5,000

b.$10,000

c.$20,000

d.$35,000