Winner Corporation acquired 80 percent of the common shares and 70 percent of the preferred shares of First Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the noncontrolling interest in First’s common stock was equal to 20 percent of the book value of its common stock. First’s balance sheet at the time of acquisition contained the following balances:

Assets   600,000                                 Liabilities 90,000

Preferred stock                100,000

Common stock 150,000

Retained Earnings 260,000

Total Assets       600,000 Total Liabilities                  600,000

The preferred shares are cumulative and have a 10 percent annual dividend rate and are four years in arrears on January 1, 20X9. All of the $5 par value preferred shares are callable at $6 per share. During 20X9, First reported net income of $100,000 and paid no dividends.

Based on the preceding information, what is First’s contribution to consolidated net income for 20X9?

$50,000

$80,000

$90,000

$100,000