On February 5, 2018, AB Inc. purchased 12% of LK Inc.s common stock for $50,000. LKs net income for the years ended December 31, 2018, and December 31, 2019, were $10,000 and $50,000, respectively. LK did not pay any dividends in 2018. LK declared and paid a dividend of $60,000 to all its shareholders in 2021. The fair value of the LK stock owned by AB Inc. is valued at $70,000 and $120,000 on December 31, 2018 and December 31, 2019, respectively. How much should AB Inc. show in the 2019 income statement as income from this investment?

	a.	$67,200
	b.	$60,000
	c.	None of these choices is correct.
	d.	$57,200
	e.	$20,000