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Assume on January 1,2018, a parent company acquired a 75% interest...

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Accounting

Assume on January 1,2018, a parent company acquired a 75% interest in a subsidiary's voting common stock. On the date of acquisition, the fair
value of the subsidiary's net assets equaled their reported book values. On January 1,2020, the subsidiary purchased a building for $518,400 The
building has a useful life of 8 years and is depreciated on a straight-line basis with no salvage value. On January 1,2022, the subsidiary sold the
building to the parent for $432,000 The parent estimated that the building had a six-year remaining useful life and no salvage value. The parent also
uses the straight-line method of amortization. For the year ending December 31,2022, the parent's "stand-alone" income (i.e., net income before
recording any adjustments related to preconsolidation investment accounting) is $540,000. The subsidiary's recorded net income is $108,000.
Based on this information, determine the balance for Income from Equity investment (on parent's pre-consolidations books preceding consolidation):
Select one:
a. $45,000
b. $88,200
C. $81,000
d. $54,000
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