12 (1 point) Listen LEO Inc. acquired a 60% interest in MARS Inc. on January 1, 2019 for $400,000. Unless otherwise stated, LEO uses the cost method to account for its investment in MARS Inc. On the acquisition date, MARS had common stock and retained earnings valued at $100,000 and $150,000 respectively. The acquisition differential (Fair Value Adjustment) was allocated as follows: $80,000 to undervalued inventory; - $40,000 to undervalued equipment. (to be amortized over 20 years) The following took place during 2019: MARS reported a net income and declared dividends of $25,000 and $5,000 respectively. LEO's December 31, 2019 inventory contained an intercompany profit of $10,000 due to an intercompany sale from MARS to LEO. LEO's net income was $75,000. All intercompany sales as well as sales to outsiders are priced to provide the selling company with gross margin of 20%. The consolidated net income attributable to the NCI portion for 2019 on the Consolidated Statement of Comprehensive income would be: ($26,800) $31,800 $26,800 $6,000