_____ on 1/1/06, Pax Acquired 100% of Sax's Outstanding Common

_____ On 1/1/06, Pax acquired 100% of Sax's outstanding common stock. For 2005, Sax reported $200,000 of net income and declared dividends of $150,000. Amortization of cost in excess of book value for 2006 was $20,000. Pax opted to use (1) the equity method of accounting and (2) non-push-down accounting. What are Sax's true earnings for 2006 from Pax's perspective?

A) $130,000
B) $150,000
C) $180,000
D) $200,000
E) $330,000