Mondell Inc., a U.S. company, acquired 100 percent of the common stock of a German company on January 1, 20X5, for $402,000. The German subsidiarys net assets amounted to 300,000 on the date of acquisition. On January 1, 20X5, the book values of its identifiable assets and liabilities approximated their fair values. As a result of an analysis of functional currency indicators, Mondell determined that the euro was the functional currency. On December 31, 20X5, the German subsidiarys adjusted trial balance, translated into U.S. dollars, contained $12,000 more debits than credits. The German subsidiary reported income of 25,000 for 20X5 and paid a cash dividend of 5,000 on November 30, 20X5. Included on the German subsidiarys income statement was depreciation expense of 2,500. Mondell uses the fully adjusted equity method of accounting for its investment in the German subsidiary and determined that goodwill in the first year had an impairment loss of 10 percent of its initial amount. Exchange rates at various dates during 20X5 follow:

	$
January 1	1 = 1.20
November 30	1 = 1.30
December 31	1 = 1.32
Average for 20X5	1 = 1.24

Refer to the preceding information. What amount should Mondell record as income from subsidiary based on the German subsidiarys reported net income?

	A.	$26,660
	B.	$31,000
	C.	$28,660
	D.	$33,000