Loeffler Company Owns 35% of the Common Stock of Tetter

Loeffler Company owns 35% of the common stock of Tetter Co. and uses the equity method to account for the investment. During 2021, Tetter reported income of $260,000 and paid dividends of $90,000. There is no amortization associated with the investment. During 2021, how much income should Loeffler recognize related to this investment?

A) $90,000.
B) $91,000.
C) $122,500.
D) $31,500.
E) $59,500.