Problem

Peregrine Corporation acquired an 80% interest in Serine Corporation in 2009 at a time when Serine's book values and fair values were equal to one another. On January 1, 2012, 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 2012 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

What is Peregrine's investment income from Serine for 2012?