On January 3, 20X9, Pleat Company acquired 80 percent of Stitch Corporation's common stock for $344,000 in cash. At the acquisition date, the book values and fair values of Stitch's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 20 percent of the total book value of Stitch. The stockholders' equity accounts of the two companies at the acquisition date are:

	Pleat			Stitch
Common Stock ($5 par value)	$	500,000		$	200,000
Additional Paid-In Capital		300,000			80,000
Retained Earnings		350,000			150,000
Total Stockholders Equity	$	1,150,000		$	430,000

Noncontrolling interest was assigned income of $11,000 in Pleat's consolidated income statement for 20X9.

Based on the preceding information, what will be the amount of net income reported by Stitch Corporation in 20X9?

Multiple Choice

• $36,000

• $66,000

• $44,000

• $55,000

HOW IS $55,000 THE ANSWER?