On January 2, 2015, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for $57,000 and classified the investment as available for sale. Ranger's net income for the years ended December 31, 2015 and 2016, were $15,000 and $51,000, respectively. During 2016, Ranger declared and paid a dividend of $62,500. There were no dividends in 2015. On December 31, 2015, the fair value of the Ranger stock owned by Howdy Doody had increased to $69,000. How much should Howdy Doody show in the 2016 income statement as income from this investment?

a $12,000. b $18,000. c. $21,375. d. $9,375.