On January $1,2022,$ Spring Co$.$ purchased a $25\%$ interest in Fall Inc. for $$500,000.$ For the year ended December $31,2022,$ Fall reported net income from operations of $$65,000$ and a loss from discontinued operations of $$10,000($net of tax$).$ Fall paid dividends of $$11,500$ on December $31,2022.$

Assume that Spring uses the equity method to account for its investment in Fall. Which of the following is the amount that would be reported on Spring's $2022$ income statement relating to Fall?

Multiple Choice

Investment income of $$13,750$ and investment loss, discontinued operations of $$2,500.$

Investment income of $$13,750.$

Investment income of $$16,250$ and investment loss, discontinued operations of $$2,500.$

Dividend revenue of $$2,875.$