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Square Company purchases an equity investment in Tangle Company at a purchase price of 88 million, representing 40% of the book value of Tangle

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Square Company purchases an equity investment in Tangle Company at a purchase price of 88 million, representing 40% of the book value of Tangle. During the current year, Tangle reports net income of $700,000 and pays cash dividends of $300,000. At the end of the year, the market value of Square's investment is $8.3 million. 
What amount of income does Square report relating to this investment in Tangle for the year? 
a. $240,000 b. $120,000 c. $280,000 d. $300,000