On January 1, Point purchased 10% of Iona Company’s common stock. Point purchased additional shares, bringing its ownership up to 40% of Iona’s common stock outstanding, on August i. During October, Iona declared and paid a cash dividend on all of its outstanding common stock. How much income from the Iona investment should Point’s income statement report?

a 10% of Iona’s income for January 1 to July 31, plus 40% of Iona’s income for August 1 to December 31 b 40% of Iona’s income for August 1 to December 31 only c 40% of Iona’s income d Amount equal to dividends received from Iona