Grant, Inc. acquired 30% of South Co.’s voting stock for $200,000 on January 2, year 1. Grant’s 30% interest in South gave Grant the ability to exercise significant influence over South’s operating and financial policies. During year 1, South earned $80,000 and paid dividends of $50,000. South reported earnings of $100,000 for the six months ended June 30, year 2, and $200,000 for the year ended December 31, year 2. On July 1, year 2, Grant sold half of its stock in South for $150,000 cash. South paid dividends of $60,000 on October 1, year 2. Grant does not elect the fair value option to report this investment. Before income taxes, what amount should Grant include in its year 1 income statement as a result of the investment?