On July 1,20X4,Pillow Corp

Multiple Choice

On July 1,20X4,Pillow Corp.obtained significant influence over Sleep Co.through the purchase of 3,000 shares of Sleep's 10,000 outstanding shares of common stock for $20 per share.On December 15,20X4,Sleep paid $40,000 in dividends to its common stockholders.Sleep's net income for the year ended December 31,20X4,was $120,000,earned evenly throughout the year.In its 20X4 income statement,what amount of income from this investment should Pillow report?

A) $12,000
B) $36,000
C) $18,000
D) $6,000