Cayman Inc. bought 30% of Maya Company on January 1, 2018 for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows:

	Cost to Maya		Transfer Price		Amount Held by Cayman at Year-End
2018	$	30,000	$	45,000	$9,000
2019	$	48,000	$	80,000	20,000
Maya reported net income of $100,000 in 2018 and $120,000 in 2019 while paying $40,000 in dividends each year.What is the Equity in Maya Income that should be reported by Cayman in 2019?

Select one:

A.

$36,000.

B.

$34,200.

C.

$37,800.

D.

$34,800.

E.

$34,500.