Jacana Corporation paid $200,000 for a 25% interest in Lilypad Corporation?s common stock on

Jacana Corporation paid $200,000 for a 25% interest in Lilypad Corporation?s common stock on January 1, 2005, but was not able to exercise significant influence over Lilypad. During 2006, Jacana reported income of $120,000, excluding its income from Lilypad, and paid dividends of $50,000. Lilypad reported net income of $40,000 during 2006 and paid dividends of $20,000. Jacana should report net income for 2006 in the amount of:

$115,000.

$120,000.

$125,000.

$130,000.

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