On July 1, 20x1, Yang Corp. purchased 40% of Adam Company's outstanding common stocks for $500,000 when the fair value of Adam's net assets was $1,000,000. Yang Corp. does not have the ability to exercise significant influence over Adam's management policies. The following date concerning Adam are available for 20x1: 6 months ended 12/31, 20x1 12 months Ended 12/31, 20x1 $300,000 150,000 Net Income Dividend declared $200,000 100,000 In Yang's income statement for the year ended December 31, 20x1, how much income should Yang report from this investment? Select one: a. Income from Adam:$120,000 b. Income from Adam: $80,000 c. Dividend Income: $40,000 d. Dividend Income: $60,000