On January 1, 2017, Dot Co. acquired a 40% interest in Jefferson, Inc. with the excess of purchase price over book value solely attributable to equipment with a five-year life and undervaluation by $100,000. During the year of acquisition, Jefferson reported net income of $150,000 and a cash dividend of $80,000. What amount of Equity Income should Dot report on its income statement for the year of acquisition? Please show work, thank you.

a) 28,000

b) 52,000

c) 68,000

d) 60,000