Jager inc. holds 30 percent of the outstanding voting shares of Kinson Co. and appropriately applies the equity method of accounting. Amortization associated with this investment equals $11,000 per year. For 2008, Kinson reported earnings of $100,000 and paid cash dividends of $40,000. During 2008, Kinson acquired inventory for $62,400, which was then sold to Jager for $96,000. At the end of 2008, Jager still held some of this inventory at its transfer price of $50,000.
Required: Determine the amount of Equity in Investee income Jager should have reported for 2008.