Gilman Company Purchased 100,000 of the 250,000 Shares of Common

Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1,2010,at $40 per share as a long-term investment.The records of Burke Corporation showed the following on December 31,2010:

$\begin{array}{lccc}\text { 2010 net income} & \$ 575,000 \\ \text { Dividends declared and paid during December, 2010 } & \$ 30,000\\\text { Market price per share} & \$ 42 \\\end{array}$
How much should Gilman Company report as investment income from the Burke investment during 2010?

A) $230,000
B) $218,000
C) $12,000
D) $30,000