On January 1, 2012, Rex Corporation Purchased 35% of the Outstanding

Multiple Choice

On January 1, 2012, Rex Corporation purchased 35% of the outstanding stock of Alamo Corporation for $500,000. Net income reported by Alamo for 2012 was $150,000. Dividends paid by Alamo during 2012 were $40,000. The amount of investment revenue that Rex should recognize for 2012 is:

A) $150,000.
B) $52,500.
C) $38,500.
D) $110,000.