On January 1, 2014, Turtle Inc. bought 30% of the outstanding shares of Shell Corporation common stock at a cost of $150,000. Turtle uses the equity method of accounting for this investment is used. During 2014, Shell Corporation reported $40,000 of net income and paid a total of $5,000 in cash dividends. At the end of 2014, the shares had a fair value of $160,000. How much investment income will Turtle report for equity in affiliate earnings during 2014?
A) $12,000.
B) $22,000.
C)$10,500.
D)$1,500.

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The Answer of On January 1, 2014, Turtle Inc. bought 30% of the outstanding shares of Shell Corporation common stock at a cost of $150,000. Turtle uses the equity method of accounting for this investment is used. During 2014, Shell Corporation reported $40,000 of net income and paid a total of $5,000 in cash dividends. At the end of 2014, the shares had a fair value of $160,000. How much investment income will Turtle report for equity in affiliate earnings during 2014?
A) $12,000.
B) $22,000.
C)$10,500.
D)$1,500.