Gibson Corp

Multiple Choice

Gibson Corp.owned a 90% interest in Sparis Co.Sparis frequently made sales of inventory to Gibson.The sales, which include a markup over cost of 25%, were $420,000 in 2017 and $500,000 in 2018.At the end of each year, Gibson still owned 30% of the goods.Net income for Sparis was $912,000 during 2018.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest for 2018?

A) $84,300.
B) $85,680.
C) $90,720.
D) $91,680.
E) $96,720.