On January 1,2012 Saffron Co

On January 1,2012 Saffron Co.recorded a $40,000 profit on the upstream sale of some equipment that had a remaining four-year life under the straight-line depreciation method.The equipment has no salvage value.Saffron had separate income of $100,000 in 2012.The parent company,Pommel Incorporated,owns 90% of Saffron.Pommel would report investment income from Saffron in 2012 of

A) $54,000.
B) $63,000.
C) $90,000.
D) $126,000.