On January 1^st. 2019, X Company purchased 15% of the common shares of B Company for $80,000.At that time, the shareholders' equity of B had a book value of $400,000.Any purchase discrepancy was allocated to equipment, which had a useful life of 5 years.B's net income during the year was $120,000.B paid dividends of $100,000 on its common shares.

The fair value of A's investment was $81,000.

Assume that X accounts for its investment in B using the cost method. How much income should X report from its investment in B for 2019?

a.$11,000

b.$14,000

c.$15,000

d.$18,000.