On January 1, Romney, Inc., purchased 10% of McCain Co.s common stock. Romney purchased additional shares bringing its ownership up to 40% of McCain's common stock outstanding on August 1. During October, McCain declared and paid a cash dividend on all of its outstanding common stock. How much income from the McCain investment should Romney's income statement report?

Group of answer choices

40% of McCain's full-year income

Amount equal to dividends received from McCain

10% of McCain's income for January 1 to July 31 plus 40% of McCain's income for August 1 to December 31

40% of McCain's income for August 1 to December 31