Peel co. received a cash dividend from a common stock investment. should peel report an increase in the investment account if it uses the cost method or the equity method of accounting? cost equityon july 1, year 1, denver corp. purchased 3,000 shares of eagle co.'s 10,000 outstanding shares ofcommon stock for $20 per share. on december 15, year 1, eagle paid $40,000 in dividends to its commonstockholders. eagle's net income for the year ended december 31, year 1, was $120,000, earned evenlythroughout the year. in its year 1 income statement, what amount of income from this investment shoulddenver report? a. $36,000b. $18,000c. $12,000d. $6,000