A 90%-owned subsidiary sells merchandise to its parent at a markup of 20% on cost. The parent's beginning inventory includes $120,000 purchased from the subsidiary. The parent's ending inventory includes $156,000 purchased from the subsidiary.

What is the impact of the above information on noncontrolling interest in net income, reported on the consolidated income statement for the year?

Select one:

A.Subtract $600

B.Subtract $6,000

C.Subtract $3,600

D.No effect

D is incorrect