The Net Incomes for Parent and Sub Inc for the Year

Multiple Choice

The Net Incomes for Parent and Sub Inc for the year ended July 31, 2012 were $120,000 and $60,000 respectively. What would be the amount of Non-Controlling Interest appearing on the Consolidated Balance Sheet on the date of acquisition (August 1, 2012) , under the Parent Company Method, assuming once again that Parent purchased 80% of Sub Inc. for $180,000?

A) $26,000
B) $72,000
C) $86,000
D) The answer cannot be determined from the information given.