1.Watson Corporation paid $200,000 for a 25% interest in Lilypad Corporation's common stock on January 1, 2019 but was not able to exercise significant influence over Lilypad. During 2019, Watson reported income of $120,000, excluding its income from Lilypad, and paid dividends of $50,000. Lilypad reported net income of $40,000 during 2019 and paid dividends of $20,000. Watson should report net income for 2019 in the amount of

a.$115,000.

b.$120,000.

c.$125,000.

d.$130,000.