Use the "QUESTION INFORMATION" below to answer the next $2$ questions $[$Questions $16-17].$

QUESTION INFORMATION: On January $1,2023,$ Tar Heel Company purchased $35\%$ of Blue Devil Company for $$128,000$ and accounted for it as a significant influence equity investment $($SIEI$).$ During $2023,$ Blue Devil reported net income of $$17,500$ and paid dividends of $$3,500.$ The fair value of Tar Heel's SIEI in Blue Devil at December $31,2023$ was $$129,225.$

QUESTION TO ANSWER: If Tar Heel elects the fair value option to account for its SIEI in Blue Devil, the increase in Tar Heel's $2023$ pretax income related to this investment is $ $q,$

$$4,900$

$$7,350$

$$

$$

$$ $$6,125$

$$ $$2,450$