On January 1, 2016, Promo, Inc The Remaining Excess of Cost Over Book Value Was Allocated

On January 1, 2016, Promo, Inc.purchased 70% of Set Corporation for $469,000.On that date the book value of the net assets of Set totaled $500,000.Based on the appraisal done at the time of the purchase, all assets and liabilities had book values equal to their fair values except as follows:
$$\begin{array} { l r r } & \text { Book Value } & \text { Fair Value } \\\text { Inventory } & \$ 100,000 & \$ 120,000 \\\text { Land } & 75,000 & 85,000 \\\text { Equipment (useful life 4 years) } & 125,000 & 165,000\end{array}$$ The remaining excess of cost over book value was allocated to a patent with a 10-year useful life.

During 2016 Promo reported net income of $200,000 and Set had net income of $100,000.

What income from subsidiary did Promo include in its net income if Promo uses the simple equity method?

A) $33,000
B) $42,000
C) $70,000
D) $100,000