5. On January 2, 2016, Pam Corporation bought 15 percent of Sun Corporation’s capital stock for $30,000. Pam accounts for this investment using the cost method. Sun’s net income for the years ended December 31, 2016, and December 31, 2017, were $10,000 and $50,000, respectively. During 2017 Sun declared a dividend of $70,000. No dividends were declared in 2016. How much should Pam report on its 2017 income statement as income from this investment?

a $1,575 b $7,500 c $9,000 d $10,500