Kaye Company Acquired 100% of Fiore Company on January 1

Multiple Choice

Kaye Company acquired 100% of Fiore Company on January 1, 2013. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2013 and paid dividends of $100.
Assume the initial value method is applied. How much will Kaye's income increase or decrease as a result of Fiore's operations?

A) $400 increase.
B) $300 increase.
C) $380 increase.
D) $100 increase.
E) $210 increase.