Sculley Co. uses the sophisticated equity method to account for the 70% investment in its subsidiary Powers Corp. At the time of the acquisition, the fair values of the net asset required approximated their book values. Based upon the following information, what amount does Sculley Co. record as subsidiary income?

Sculley Co. internally generated income:	$125,000
Powers Corp. internally generated income:	$ 75,000
Intercompany profit on Powers Corp. beginning inventory:	$ 20,000
Intercompany profit on Powers Corp ending inventory:	$ 10,000

	a.	$59,500
	b.	$75,000
	c.	$135,000
	d.	$200,000

I need help with the income distribution schedule below

Subsidiary Company Income Distribution Schedule
Deferred profit in ending inventory	10,000	Internally generated net income	75,000
		Realized profit in beginning inventory	10,000
		Adjusted income	85,000
		Parent share	70%
		Subsidiary income