Diamond Company owns 80 percent of Emerald, and Emerald owns 90 percent of Sapphire, Inc. Separate operating income totals for the current year follow; they contain no investment income. None of these acquisitions required amortization expense. Included in Sapphire's income is a $42,000 intra-entity gain on transfers to Emerald still in Emerald's possession. Emerald Sapphire Separate operating income Diamond $385,000 $245,000 $258,000 What is Diamond's accrual-based net income for the year?