Grant, Inc. (Grant) acquired 30% of South Co.'s (South) voting stock for $200,000 on January 1, 20X1. Grant's 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. On that date, South reported assets of $500,000 and liabilities of $100,000. South had equipment with a book value of $60,000 that was actually worth $160,000. The equipment had a remaining useful life of five years. During 20X1, South reported net income of $80,000 and paid dividends of $50,000. What amount of income should Grant recognize in 20X1 as a result of this investment?