Olivia Co$.$ owns $4,000$ of the $10,000$ outstanding shares of Hobbitt and exercises significant influence over the company. During $2011,$ Hobbitt earns $$80,000$ and pays cash dividends of $$30,000.$ For the year ended December $31,2011,$ Olivia should report income related to the investment equal to:

$$0$

$$12,000$

$$32,000$

$$ $$20,000$