On January 1, 2010, Pinnacle, Inc

On January 1, 2010, Pinnacle, Inc.purchased 40% of the common stock of Valley Company for $61, 000.At the date of acquisition, the following information for Valley Company was available: In 2010, Valley earned $18, 000 of net income and distributed $12, 500 of dividends.How much investment income would Pinnacle record in 2010?

A) $6, 700
B) $7, 000
C) $7, 200
D) $7, 400