Aaron, a Holder of a $200,000 Xenon Inc

Multiple Choice

Aaron, a holder of a $200,000 Xenon Inc. bond, collected the interest due on June 30, 20X2, and then sold the bond to Dolphin Inc. for $185,000. On that date the bond issuer, Xenon, an 80 percent owner of Dolphin, had a $220,000 carrying amount for this bond.
-Based on the information given above,what was the effect of Dolphin's purchase of Xenon's bonds on the noncontrolling interest amount reported in Xenon's June 30,20X2 consolidated balance sheet?

A) $3,000 increase
B) $7,000 decrease
C) $7,000 increase
D) No effect