Lexus Corporation acquired $70$ percent of Triumph Corporation's voting stock on January $1,202,$ for $$280,000.$ The fair value of the noncontrolling interest was $$120,000$ at the date of

acquisition. Triumph reported common stock outstanding of $$80,000$ and retained earnings of $$270,000.$ The differential is assigned to buildings with an expected life of $10$ years at the da

of acquisition.

On December $31,204,$ Lexus had $$10,000$ of unrealized profits on its books from inventory sales to Triumph, and Triumph had $$15,000$ of unrealized profit on its books from inventory

sales to Lexus. All inventory held at December $31,20$X$4,$ was sold during $205.$

On December $31,205,$ Lexus had $$12,000$ of unrealized profit on its books from inventory sales to Triumph, and Triumph had unrealized profit on its books of $$28,000$ from inventory sales

to Lexus.

In $205$ Triumph reported net income of $$160,000.$ The amount Lexus will report as Income from Triumph Company for year $205$ would be:

$$100,900.$

$$99,600.$

$$98,800.$

$$97,400.$