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How much should uml show in the income statement

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Question - On January 2, 2020, UML Corporation purchased 10% of UMB Corporation's common stock for $400,000. UMB's net income for the years ended December 31, 2020 and 2021, were $100,000 and $200,000, respectively. During 2020, UMB declared and paid a dividend of $30,000. There were no dividends in 2021. On December 31, 2020, the fair value of the UMB stock owned by UML had increased to $425,000. How much should UML show in the 2020 income statement as income from this investment?

a. $25,000.

b. $28,000.

c. $38,000.

d. $55,000.

Reference no: EM132787350

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