Pell Company acquires 80% of Demers Company for $500,000 on January 1,2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buidings were undervalued by $40,000, each having a 10 -year remaining life. Any excess consideration transferred over fair volue was attributed to goodwill with an indefinite Ife. Based on in annual review, goodwill has not been impaired. Demers eurns income and pays dividends as follows: Assume the initial value method is applied How much does Pell recard as income from Demers for the yeat ended December 31,2019 ? Multiple Choice $73,000. $32,000. $74,400. $42,400. $41,000