Jambon Company Owns 10% Interest in the Stock of Fanth

Multiple Choice

Jambon Company owns 10% interest in the stock of Fanth Corporation. During the year, Fanth pays $8,000 in dividends to Jambon, and reports $200,000 in net income. Jambon Company's investment in Fanth will increase Jambon net income by

A) $20,000.
B) $2,000.
C) $8,000.
D) $12,000.