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On January 1,20X4, Pillow Corporation obtained significant influence over Sleep Company through the purchase of...

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Accounting

On January 1,20X4, Pillow Corporation obtained significant influence over Sleep Company 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
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