On July 1, Year 1, a corporation purchased 3,000 shares of E Co.âs 10,000 outstanding shares of common stock for $20 per share but did not elect the fair value option. On December 15, Year 1, E paid $40,000 in dividends to its common shareholders. Is net income for the year ended December 31, Year 1, was $120,000, earned evenly throughout the year. In its Year 1 income statement, what amount of income from this investment should the corporation report? (A) $36,000 (B) $18,000 (C) $12,000 (D) $6,000
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