Wally Corporation acquired 70 percent of the common shares and 60 percent of the preferred shares of Safety Corporation at underlying book value on January 1, 20X6. At that date, the fair value of the noncontrolling interest in Safetys common stock was equal to 30 percent of the book value of its common stock. Safetys balance sheet at the time of acquisition contained the following balances:

Assets 700,000 Liabilities 110,000

Preferred stock 100,000

Common stock 200,000

Retained Earnings 290,000

Total Assets 700,000 Total Liabilities 700,000

The preferred shares are cumulative and have an 8 percent annual dividend rate and are three years in arrears on January 1, 20X6. All of the $10 par value preferred shares are callable at $12 per share. During 20X6, Safety reported net income of $80,000 and paid no dividends.

Based on the preceding information, what is Safetys contribution to consolidated net income for 20X6?

$48,000

$80,000

$72,000

$56,000