Peregrine Corporation acquired an 80% interest in Serine Corporation in 2011 at a time when Serine's book values and fair values were equal to one another. On January 1, 2014, Serine sold a truck with a $55,000 book value to Peregrine for $100,000. Peregrine is depreciating the truck over 10 years using the straight-line method. The truck has no salvage value. Separate incomes for Peregrine and Serine for 2014 were as follows:

Peregrine Serine

Sales............................................$1,800,000..........................$1,050,000

Gain on sale of truck.....................................................................45,000

Cost of Goods Sold.......................... ..(750,000)............................(285,000)

Depreciation expense.......................... (450,000)............................(135,000)

Other expenses.......................... ........(180,000)............................(450,000)

Separate incomes...............................$ 420,000...........................$ 225,000

Peregrine's investment income from Serine for 2014 was

A) $108,000.

B) $144,000.

C) $147,600.

D) $180,000.