On January 1, 2012, Rex Corporation purchased 35% of the outstanding stock of Alamo Corporation for $500,000. Net income reported by Alamo for 2012 was $150,000. Dividends paid by Alamo during 2012 were $40,000. The amount of investment revenue that Rex should recognize for 2012 is

$150,000.

$52,500.

$38,500.

$110,000.