On January 2, 2020, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $10,000 and $50,000, respectively. During 2020, Ranger declared and paid a dividend of $60,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?

A. $26,000. B. $7,200. C. $20,000. D. $27,200.