Aroma Limited Owns a 25% Interest in the Shares of Baltic

Multiple Choice

Aroma Limited owns a 25% interest in the shares of Baltic Corporation. During the year, Baltic pays $10,000 in dividends to Aroma and reports $100,000 net income. Aroma's investment in Baltic will increase Aroma's net income by

A) $25,000.
B) $27,500.
C) $10,000.
D) $ 2,500.