Ridge Co. owns 5% of the outstanding shares of North Co. During 2020, North Co. earns $100,000 in net income and pays cash dividends of $40,000. How much investment income and dividend revenue will Ridge report in 2020?

a. $5,000 in investment income and $2,000 in dividend revenue

b. $0 in investment income and $2,000 in dividend revenue

c. $5,000 in investment income and $0 in dividend revenue.

d. $100,000 in investment income and $40,000 in dividend revenue