Patch Corporation purchased land from Sub1 Corporation for $350,000 on December 3, 20X5. This purchase followed a series of transactions between Patch-controlled subsidiaries. On January 23, 20X5, Sub3 Corporation purchased the land from a nonaffiliate for $240,000. It sold the land to Sub2 Company for $220,000 on July 15, 20X5, and Sub2 sold the land to Sub1 for $305,000 on September 5, 20X5. Patch has control of the following companies: Subsidiary Level of Ownership 20X5 Net Income Sub3 60 percent $ 60,000 Sub2 90 percent $ 140,000 Sub1 70 percent $ 90,000 Patch reported income from its separate operations of $345,000 for 20X5. Based on the preceding information, what should be the amount of income assigned to the controlling shareholders in the consolidated income statement for 20X5?

$474,000

$110,000

$635,000

$525,000