Piemon Company routinely receives goods from its 80%-owned subsidiary, Siemon Corporation. In 20X4, Siemon sold merchandise that cost $60,000 to Piemon for $90,000. Half of this merchandise remained in Piemon's December 31, 20X4 inventory. This inventory was sold in 20X5. During 20X5, Siemon sold merchandise that cost $150,000 to Piemon for $200,000. One-fifth of the 20X5 merchandise inventory remained in Piemon's December 31, 20X5 inventory. Selected income statement information for the two affiliates for the year 20X5 was as follows:

Piemon Siemon

Sales revenue 500,000 400,000

COGS 350,000 250,000

Oper. Exp. 50,000 70,000

Separate income 100,000 80,000

What was Piemon's income from Siemon in 20X5?

Select one:

a. $64,000

b. $61,000

c. $68,000

d. $44,000

e. $56,000