Problem:
On January 1, 2012, Race Corp. acquired 70% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $250,000 goods which cost $220,000. Gallow still owned 20% of the goods at year-end. Gallow's reported net income was $316,000, and Race's net income was $708,000. Race decided to use the equity method to account for this investment.
Required:
Question: What was the noncontrolling interest's share of consolidated net income?
A. 99,400
B. 28,400
C. 34,400
D. 120,400
E. None of the above
Note: Be sure to show how you arrived at your answer.