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Big Company acquires 90 percent of Little Company on January 1, Year One. On that...

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Accounting

Big Company acquires 90 percent of Little Company on January 1, Year One. On that date, Little has unpatented technology that has not previously been recorded but is worth $100,000. It should have a life of five years. In addition, goodwill of $40,000 is recognized. By the end of Year One, Little reports net income for the period of $300,000. What amount should be recognized on the Year One financial statements as the noncontrolling interest in the net income of Little?

A) Zero

B) $27,900

C) $28,000

D) $30,000

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