Chase Company Owns 80% of Lawrence Company and 40% of Ross

Multiple Choice

Chase Company owns 80% of Lawrence Company and 40% of Ross Company. Lawrence Company also owns 30% of Ross Company. Separate operating incomes for 2013 of Chase, Lawrence, and Ross are $450,000, $300,000, and $250,000, respectively. Each company also retains a $20,000 unrealized gain in their current income figures. Annual amortization expense of $15,000 is assigned to Chase's investment in Lawrence and another $15,000 is assigned to Lawrence's investment in Ross.
Compute Lawrence's accrual-based income for 2013.

A) $354,000.
B) $329,500.
C) $334,000.
D) $265,000.
E) $344,500.