On January 1, 2013, Anderson Company Purchased 40% of the Voting

On January 1, 2013, Anderson Company purchased 40% of the voting common stock of Barney Company for $2,000,000, which approximated book value. During 2013, Barney paid dividends of $30,000 and reported a net loss of $70,000.
What amount of equity income would Anderson recognize in 2013 from its ownership interest in Barney?

A) $12,000 income.
B) $12,000 loss.
C) $16,000 loss.
D) $28,000 income.
E) $28,000 loss.