Problem
On January 1, 20X7, Chicago Corporation purchased 6,000 shares of Buffalo company's 15,000 outstanding share of common stock for $25 per share. Chicago uses the equity method to account for its investment in Buffalo. On December 31,20X7 , Buffalo paid $120,000 in dividends to its common stockholders and reported net income of $300,000. At December 31,20X7 it is determined that Chicagos share of Buffalos fair value is $152,000. In its 20X7 income statement, what amount of income from this investment should Chicago report?