Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. During 2018, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000. If Blanco Company uses the fair value method of accounting for its investment in Darby Company, the income related to this investment for year 2018.

$100,000. 

$400,000. 

$20,000. 

$80,000. 

Answer rating: 100% (QA)

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