On January 1, 20X9, Company A acquired 80 percent of the common stock and 60 percent of the preferred stock of Company B, for $400,000 and $60,000, respectively. At the time of acquisition, the fair value of the common shares of Company B held by the noncontrolling interest was $100,000. Company B's balance sheet contained the following balances:

Preferred Stock ($5 par value) $100,000
Common Stock ($10 par value) 200,000
Retained Earnings 300,000
Total Stockholders' Equity $600,000

For the year ended December 31, 20X9, Company B reported net income of $100,000 and paid dividends of $40,000. The preferred stock is cumulative and pays an annual dividend of 10 percent.
1. Based on the preceding information, what will be the equity method income reported by Company A from its investment in Company B during 20X9?