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Surrell Inc. owns 30% of the outstanding voting common stock of Vicker Co. and has...

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Accounting

Surrell Inc. owns 30% of the outstanding voting common stock of Vicker Co. and has the ability to significantly influence the investee's operations and decision-making. On January 1,2015, the balance in the Investment in Vicker Co. account was $402,000. Amortization associated with this acquisition is $9,558 per year. During 2020, Vicker earned an income of $108,000 and paid cash dividends of $36,000. Previously in 2019, Vicker had sold inventory costing $28,800 to Surrell for $48,000. All but 25% of this merchandise was consumed by Surrell during 2020. The remainder was used during the first few weeks of 2020. Additional sales were made to Surrell in 2020; inventory costing $33,600 was transferred at a price of $60,000. Of this total, 40% was not consumed until 2021.
What amount of equity income would Surrell have recognized in 2021 from its ownership interest in Vicker?
A. $9,936
B. $24,840
C. $19,872
D. $21,114
E. $17,082
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