Lynx Company invested $650,000 to acquire 40,000 shares of Cub stock on May 1, 2017. At the date of acquisition Cub had the following Stockholders Equity:

Common Stock ($1 par) : $100,000

Paid in Capital : $600,000

Retained Earnings: $550,000

At the date of acquisition, the book value of Cub's assets and liabilities were identical except for equipment which had a book value of $390,000 and a fair market value of $510,000 with a remaining life of 6 years.

During 2017 Cub had income of $90,000 and paid dividends of $15,000 on April 15 and $20,000 on October 15.

REQUIRED:

A. Determine the income that would be reported by Lynx on its 2017 income statement assuming that Lynx could exercise significant influence over Cub.