On January 2, 2020, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income

for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. During 2021, Ranger declared and paid a dividend of $60,000. There were no dividends in 2020. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. What is the effect of this investment on the 2021 income statement

Business

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On January 1, 2020, the balance of common stock & APIC is derived as follows:

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