P Company Owns an 80% Interest in S Company

Multiple Choice

P Company owns an 80% interest in S Company. During 2017, S sells merchandise to P for $200,000 at a profit of $40,000. On December 31, 2017, 50% of this merchandise is included in P's inventory. Income statements for P and S are summarized below: Noncontrolling interest in income for 2017 is:

A) $4,000.
B) $19,200.
C) $20,000.
D) $24,000.