JDR Company Purchased 40% of the Common Stock of YRK $\begin{array}{lccc}\text { 2010 net income} &\$ 290,000 \\\text { Dividends declared and paid during December, 2010 } &\$ 20,000\end{array}$

Multiple Choice

JDR Company purchased 40% of the common stock of YRK Corporation on January 1,2010,for $2,000,000 as a long-term investment.The records of YRK Corporation showed the following on December 31,2010:


$\begin{array}{lccc}\text { 2010 net income} &\$ 290,000 \\\text { Dividends declared and paid during December, 2010 } &\$ 20,000\end{array}$
How much investment income should JDR report from the YRK investment during 2010?

A) $290,000
B) $30,000
C) $116,000
D) $12,000