On July 1, Year 1, Denver Corp. purchased 3,000 shares of Eagle Co.’s 10,000 outstanding
shares of common stock for $20 per share but did not elect the fair value option. On
December 15, Year 1, Eagle paid $40,000 in dividends to its common shareholders. Eagle’s
net income for the year ended December 31, Year 1, was $120,000, earned evenly
throughout the year. In its Year 1 income statement, what amount of income from this
investment should Denver report?