On January 1, 2009, Regal Co. purchased 30% of the outstanding voting stock of Air Co for $300,000. The book value of Air's net assets on the acquisition date was $800,000. Air's depreciable assets with a ten-year remaining life were undervalued by $120,000 (Regal's share of this amount is $36,000). Regal uses straight-line depreciation. During 2009, Air reported net income of $75,000 and paid dividends of $25,000.On December 31, 2009 the Air investment had a fair value of $308,000. Under the Equity Method of accounting, the income reported by Regal during 2009 pertaining to the Air investment was