Hana co., acquires 80 percent of Ahmad Corporation for JD361,600 cash on January 1, Y1. For internal reporting purposes, Hana, co., employs the equity method to account for this investment. Ahmad's assets and liabilities equaled their fair values except for buildings which are overvalued by JD10,000 Buildings have a 5-year remaining life, (impairment of goodwill 10% yearly). On January 1, Y1, Ahmad had the following equities: Common stock Additional paid-in capital Retained earnings Total 250,000 110,000 40,000 400,000 The companies' financial statements for the year ending December 31, Y1, follow Hana Co Ahmad Co. Gross Profit 100,000 140,000 Selling, administrative expenses (70,000) (25,000) Operating Income 30,000 115,000 Equity in Subsidiary Earnings ?????? Net income 222222 115,000 Retained earnings, 1/1/Y1 60,000 40,000 Activate Windows Net income ????? 115.000 Window Dividends (30,000) (20,000)