Question - On January 4, 2002 Wynn Inc. bought 15% of Parr Corporation's common stock for $60,000. Wynn appropriately accounts for this investment by the cost method. The following data concerning Parr are available for the years ended Dec 31, 2002 and 2003.
2002: Net Income $30,000
Dividend Paid None
2003: Net Income $90,000
Dividend Paid $80,000
In its income statement for the year ended December 31, 2003, how much should wynn report as income from this investment.
a. $4,500
b. $9,000
c. $12,000
d. $13,500