7. On January 1, Pop purchased 10 percent of Son Company’s common stock. Pop purchased additional shares, bringing its ownership up to 40 percent of Son’s common stock outstanding, on August 1. During October, Son declared and paid a cash dividend on all of its outstanding common stock. How much income from the Son investment should Pop report for the year ended December 31?

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