The Following Are the 2020 Income Statements of Roller Corp

The following are the 2020 Income Statements of Roller Corp and Larmer Corp.
Income Statements
For the Year Ended December 31, 2020
$\begin{array}{|l|r|r|}\hline & \text { Roller } & \text { Larmer } \\\hline \text { Sales } & \$ 900,000 & \$ 360,000 \\\hline \text { Other Income } & \$ 60,000 & \$ 21,000 \\\hline \text { Gain on Sale of Land } & & \$ 30,000 \\\hline \text { Cost of Sales } & \$ 420,000 & \$ 168,000 \\\hline \text { Operating Expenses } & \$ 150,000 & \$ 90,000 \\\hline \text { Depreciation Expense } & \$ 30,000 & \$ 39,000 \\\hline \text { Income Tax } & \$ 120,000 & \$ 45,000 \\\hline \text { Net Income } & \$ 240,000 & \$ 69,000\\\hline\end{array}$ Other Information:
During 2020 Larmer paid dividends of $24,000. Roller acquired its 30% stake in Larmer at a cost of $400,000 and uses the cost method to account for its investment.
The acquisition differential amortization schedule showed the following write-off for 2020:
$\begin{array}{|l|r|}\hline \text { Machinery and Equipment } & \$ 10,000 \\\hline \text { Goodwill Impairment Loss } & \$ 5,000 \\\hline \text { Long-Term Liabilities } & (\$ 3,000) \\\hline \text { Acquisition Differential Amortization-2020 } & \$ 12,000\\\hline\end{array}$ During 2020, Larmer paid rent to Roller in the amount of $12,000, which Roller has recorded as other income.
In 2019, Roller sold Land to Larmer and recorded a profit of $10,000 on the sale. During 2020, Larmer sold the land to a third party.
Both companies are subject to a 40% tax rate.
Prepare Roller Inc's 2020 income statement, assuming that Larmer is considered to be a joint venture and is reported using the equity method.
Roller Inc.
Income Statement for the
Year ended December 31, 2020
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 900,000 \\\hline \text { Other Income }(\$ 60,000-[30 \% \times \$ 24,000]) & \$ 52,800 \\\hline \text { Investment Income } & \$ 10,500 \\\hline \text { Cost of Sales } & \$ 420,000 \\\hline \text { Operating Expenses } & \$ 150,000 \\\hline \text { Depreciation Expense } & \$ 30,000 \\\hline \text { Income Tax } & \$ 120,000 \\\hline \text { Net Income } & \$ 243,300\\\hline\end{array}$ Calculation of Investment Income