On January 1, Year 4. Place Inc. acquired an 80 percent Interest in Setting Co. for $800,000 cash. At that time, Setting's assets and liabilities had carrying amounts equal to fair values, except for the following: Inventory Planet and equipment Bonds payable Undervalued by $75,000 Undervalued by $50, eee overvalued by $40, eee Turns over 6 times a year Remaining useful life: 10 years Maturity date: December 31, Year 8 The premium/discount on bonds payable is amortized on a straight-line basis. At January 1, Year 4. Setting had 100.000 common shares outstanding with a carrying amount of $550.000 and retained earnings of $50.000. The abbreviated financial statements of Place and Setting on December 31, Year 6. are as follows: STATEMENTS OF FINANCIAL POSITION Place Setting Plant and equipment (net) $1,250,000 $1,555,888 Investment in setting 880,000 Current assets 950,000 see, 000 $3,888,888 $2,355,600 Common shares $1,800,000 $ 550,000 Retained earnings 1,500,000 725,082 10% bonds payable 800,000 Current liabilities 580,000 280,000 $3,000,000 $2,355,600 COMBINED INCOME AND RETAINED EARNINGS STATEMENTS Place Setting Sales $2,500,000 $900,000 Cost of goods sold 1,200, eee 330,000 Expenses 400,000 220,000 1,600,000 550,000 Net operating income 900, eee 350,000 Dividends received from Setting 108, eee Profit 1,800,000 350,000 Retained earnings, Jan. 1, Year 6 800, eee 500,000 1,800, eee 850,000 Dividends declared and paid 300, eee 125,000 Retained earnings, Dec. 31, Year 6 $1,500,000 $725,000 At December 31, Year 4. Place's consolidated statement of financial position reported a non-controlling Interest of $260.000. Setting did not declare any dividends during Year 4. What did Place's consolidated Income statement for the year ended December 31. Year 4. report as the non-controlling Interest's share of consolidated net income