Penny Corporation paid $200,000 for a 25% interest in Cindy Corporation's common stock on January 1, 2002, but was not able to exercise significant influence over Cindy. During 2003, Penny reported income of $120,000, excluding its income from Cindy, and paid dividends of $50,000. Cindy reported net income of $40,000 during 2003 and paid dividends of $20,000. Penny should report net income for 2003 in the amount of:
A-$115,000
B-$120,000
C-$125,000
D-$130,000