Nance Company owns 30% interest in the stock of Finley Corporation. During the year, Finley pays $25,000

Question:

Nance Company owns 30% interest in the stock of Finley Corporation. During the year, Finley pays $25,000 in dividends to Nance, and reports $100,000 in net income. Nance Company’s investment in Finley will increase by
a. $25,000.
b. $30,000.
c. $24,000.
d. $22,500