Clay Corporation Owns a 40 Percent Interest in the Stock

Clay Corporation owns a 40 percent interest in the stock of Gilmer Corporation.During 2013,Gilmer pays $25,000 in dividends to Clay and reports $107,000 in net income.Clay Corporation's investment in Gilmer will increase Clay's income before income taxes by

A) $17,800.
B) $42,800.
C) $52,800.
D) $32,800.