Kaye Company acquired 100% of Fiore Company on January 1, 2009. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2009 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