On January 1, Integrity Co. acquired a 40% interest in Accountability, Inc. with the excess of purchase price over book value solely attributable to equipment with a ten-year life and undervaluation by $250,000. During the year of acquisition, Accountability reported net income of $500,000.

What amount of Equity Income should Integrity report on its income statement for the year of acquisition?

$250,000

$210,000

$190,000

$200,000