Dil Corporation acquired 30 percent of the voting stock of Lar Company at book value on July 1, 2011. During 2013, Lar paid dividends of $160,000 and reported income of $500,000 as follows:
Income before extraordinary item $300,000
Extraordinary gain (tax credit from
operating loss carryforward) 200,000
Net income $500,000
REQUIRED: Show how Dil’s income from Lar should be reported for 2013 by means of a partial income statement for Dil Corporation.