On 1/1/X1, P purchased 80% of Slidell Company for an amount equal to 80% of Slidell's equity book of $800,000 on 1/1/X1. During year X1, Slidell sold Inventory costing $30,000 to P for $40,000. On 12/31/X1, a scan revealed that 30% of the units purchased from Slidell remained in P's inventory. During year X1, Slidell reported an income of $30,000 and Paid $10,000 of dividends. Based on the information above, P should record which of the following amounts of investment income in year X1 ?

Select one:

a.$19,200

b.$21,000

c.$21,600

d.$24,000

e.$16,800