Tooker Co Acquired 80% of the Outstanding Common Shares of Vu

Multiple Choice

Tooker Co. acquired 80% of the outstanding common shares of Vu Ltd. There were no fair value increments or goodwill that arose with the purchase. During 20X1, Tooker sold $7,000 of inventory to Vu for a gross profit of 40%. At the end of 20X1, $3,000 of the inventory is still in Vu's inventory. On their separate-entity income statements for 20X1, Tooker and Vu reported the following: $$\begin{array} { | l | r | r | } \hline & { \text { Tooker } } & { \text { Vu } } \\\hline \text { Sales } & \$ 38,000 & \$ 15,000 \\\hline \text { Cost of sales } & 26,400 & 8,500 \\\hline \text { Operating expenses } & \underline { 5,200 } & \underline { 3,600 } \\\hline \text { Net income } & \$ 6,400 & \$ 2,900 \\\hline\end{array}$$ Vu sold all the goods from Tooker that were in its opening inventory. There were no sales between Tooker and Vu in 20X2. What is the non-controlling interest's share of consolidated net income at the end of 20X2?

A) $580
B) $1,620
C) $1,860
D) $2,100