You are part of the student body at a university. The board of regents has decided to raise tuition, and they have given you a statement to present to the student body. Regents' message: We, the board of regents, have decided to raise your tuition $200 per credit. We did this to fund the construction of a new science building on campus. We will implement this tuition increase immediately. The regent's message places blame for the tuition increase on .

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?