On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $456,000 cash. The acquisition-date fair value of the noncontrolling interest was $50,600. At January 1, 2016, Stars net assets had a total carrying amount of $354,200. Equipment (eight-year remaining life) was undervalued on Stars financial records by $51,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $44,800 in 2016 and $51,200 in 2017. Each year since the acquisition, Star has declared a $12,800 dividend. At January 1, 2018, Prides retained earnings show a $160,000 balance.

Selected account balances for the two companies from their separate operations were as follows:

	Pride			Star
2018 Revenues	$	318,800		$	182,500
2018 Expenses		224,200			124,900

What is consolidated net income for 2018?

• A. $120,500.

• B.$122,370.

• C.$123,900.

• D.$152,200.