Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2020. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Demers earns income and declares and pays dividends as follows:

	2020	2021	2022
Net Income	$100,000	$120,000	$130,000
Dividends	40,000	50,000	60,000

Assume the partial equity method is applied, how much does Pell record as Income from Demers for the year ended December 31, 2020?

		A. $80,000.
		B. $74,400.
		C. $73,000.
		D. $42,400.