Parent Company owns 60% of the voting shares of Sub Inc. which it acquired on Sub's incorporation on January 1, 2021. Parent accounts for its investment using the cost method. The Income Statements for the two companies for the year ended December 31, 2021 are as follows: Sales Dividend income Parent Company $ 3,900,000 48,000 Sub Inc. $1,400,000 3,948,000 1,400,000 Cost of sales Other expenses 2,400,000 900,000 300,000 2,700,000 100,000 1,000,000 Income before tax 1,248,000 400,000 Income taxes 436,800 140,000 Net income for the year $ 811,200 $ 260,000