Heartfelt Company owns a 40% interest in the voting common stock of Candle Corporation, accounted for using the equity method. During 2020, Candle Corporation reported net income of P100,000 and declared and paid cash dividends of P10,000. The carrying value of the Candle investment was P500,000 on January 1, 2020. How much income should Heartfelt report during 2020 from the Candle investment?

a. 200,000

b. 40,000

c. 10,000

d. 4,000