Assume that on January 1, 2012, a parent company acquired a 70% interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values except for machinery and equipment, which had a fair value of $520,000 and a reported book value of $250,000. The machinery and equipment had a 5 year remaining useful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the parent and subsidiary for the year ended December 31, 2013: Income Statement Parent Subsidiary
Revenues $2160,000 $288,000
Equity income 63,000
Expenses (1440,000) (1440,000)
Net income $783,000 $144,000

For the year ending December 31, 2016, the parent’s "stand-alone" income (i. e., net income before recording any adjustments related to pre-consolidation investment accounting) is $350,000. The subsidiary’s recorded net income is $70,000. Based on this information, determine the balance for income from investment in subsidiary (on parent’s pre-consolidations books preceding consolidation):

a. $21,000
b. $28,000
c. $56,000
d. $63,000