At the beginning of the year, Corporation A purchased 8,000 shares of Corporation Bs common stock for $40 per share. B reported net income of $120,000 for the year and paid dividends of $45,000. As of December 31, the market value of Bs common stock was $42 per share. Assuming the shares owned by Company A represent 10% of the total outstanding stock of Company B, how much income should A report from its investment in B for the year if the shares are considered trading securities?

$4,500

$12,000

$20,500