A parent acquired $80\%$ of the voting stock of a subsidiary for $$50,000$ on Jan $1,2020.$ The fair value of the noncontrolling interest

was $$12,500.$ Book value at the date of acquisition was $$40,000,$ and at the time of acquisition Equipment was overvalued by

$$10,000(5-$year life, straight$-$line$).$ At the end of the year, the subsidiary reported net income of $$8,000$ and declared and paid

dividends of $$1,000.$ On the $2020$ consolidation working paper, eliminating entry $)$ recognizes noncontrolling interest in net

income of:

$$2,000$

$$1,800$

$$1,600$

$$1,400$