Parent Imperial Corporation acquired a 90% interest in Sub Corporation in 20X0 when Sub's book values were equivalent to fair values. Sub-sold equipment with a book value of $80,000 to Parent for $130,000 on January 1, 20X1. The parent fully depreciates the equipment over four years by using the straight-line method. Sub's reported net income for 20X1 was $320,000. Parent's 20X1 income from Sub was:

Select one:

a.

$249,250

b.

$250,500

c.

$254,250

d.

$288,000