York Corporation owns 25% of Carson, Inc. that it purchased on January 1, 2010, for $100,000. York uses the cost method for accounting for its investment in Carson, Inc. During 2010, Carson, Inc. paid a total of $45,000 of dividends and recorded income of $200,000. Determine how much York's net income would differ if it used the equity method instead of the cost method. Show your work.

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The Answer of York Corporation owns 25% of Carson, Inc. that it purchased on January 1, 2010, for $100,000. York uses the cost method for accounting for its investment in Carson, Inc. During 2010, Carson, Inc. paid a total of $45,000 of dividends and recorded income of $200,000. Determine how much York's net income would differ if it used the equity method instead of the cost method. Show your work.

York Corporation Owns 25% of Carson, Inc