Patten Company Purchased an 80% Interest in Salty Inc

Multiple Choice

Patten Company purchased an 80% interest in Salty Inc.on January 1, 2016, for $500,000 when the stockholders' equity of Salty was $500,000.Any excess of cost was attributed to a building with a 20-year life.On July 1, 2019, Patten sold part of its investment and reduced its ownership interest to 60%.Salty earned $62,000, evenly, during 2019.The NCI share of 2019 consolidated income is

A) ​$10,000
B) ​$12,400
C) ​$16,725
D) ​$43,400