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  3. on january 1, year 9, p inc. purchased 60,000 of t

On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S...

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Accounting

On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for $1,800,000. On the date of acquisition, S's shareholders equity was as follows:

Preferred shares, 8%, non- cumulative, callable at $102, 1,000 shares outstanding $100,000

Common shares, no par value 100,000 shares outstanding 100

Retained earnings $1,823,000

Total $1,923,100

At the time of acquisition preferred shares had one year of dividends in arrears.

Any purchase price discrepancy is allocated to patent with an infinite life. During Year 9, S earned a net income of $500,000 and no dividends were paid out.

What is net income attributable to non-controlling interests on the consolidated income statement for the year ended December 31, Year 9?

A. $204,800

B. $196,800

C. $208,000

D. $200,000

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