Jones, Incorporated acquires 15% of Anderson Corporation on…
Jones, Incorporated acquires 15% of Anderson Corporation on January 1, 2025, for $105,000, when the book value of Anderson was $600,000 and did not exercise significant influence. During 2025, Anderson reported net income of $150,000 and paid dividends of $50,000. On January 1, 2026, Jones purchased an additional 25% of Anderson for $200,000. Any excess cost over book value is attributable to goodwill with an indefinite life. The fair-value method was used during 2025, but Jones has deemed it necessary to change to the equity method after the second purchase. During 2026, Anderson reported net income of $200,000 and reported dividends of $75,000.The equity income reported by Jones for 2026 with regard to the Anderson investment is