Pinta Company Acquired an 80% Interest in Strummer Company on January

Multiple Choice

Pinta Company acquired an 80% interest in Strummer Company on January 1, 2016, for $270,000 cash when Strummer Company had common stock of $150,000 and retained earnings of $150,000. All excess was attributable to plant assets with a 10-year life. Strummer Company made $30,000 in 2016 and paid no dividends. Pinta Company's separate income in 2016 was $375,000. Controlling interest in consolidated net income for 2016 is:

A) $405,000.
B) $399,000.
C) $396,000.
D) $375,000.