On January 2, 2013, Quincy Corporation purchased a 40% interest in Mary, Inc. for $200,000. Fair values of Mary's net assets equaled book values except for equipment undervalued by $45,000. The equipment had a six-year remaining life. During 2013, Mary reported net income of $60,000 and paid dividends of $10,000. What is Quincy's Equity Income for 2013?

Please explain using words and numbers. (Like how/why you got each number for the calculation.) Thanks.