On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $ 40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five-year estimated remaining life. Barre reported net income of $250,000, $ 270.000 and $310,000 in 2020, 2021, and 2022, respectively Republic received dividends from Barre of $ 90,000, $105.000 and $ 120,000 for 2020, 2021, and 2022, respectively.

Assume that Republic uses the equity method to account for its investment in Barre. What is the balance in the pre-consolidation Income (loss) from Subsidiary account for 2021?

a. $166,000

b. $266,000

c. $270,000

d. $271,000