Fullerton purchases 40 percent of James Company on January 1 , 2021 for $628,000. Although Fullerton did not use it, this acquisition gave Fullerton the ability to apply significant influence to James's operating and financing policies. James reports assets on that date of $1,548,000 with labiliies of $574,000. One building with a seven-year remaining life is undervalued on James's books by $213,500. Also, James's book value for its trademark (10-year remaining life) is undervalued by $382,500. During the year, James reports net income of $188,000 while declaring dividends of $130.000. What is the equity income in James to be reported by Fullerton in 2021?

Choices:

$47,700

$75,200

$61,400

$52,600