A parent sells land to its 80%-owned subsidiary at a gain of $100,000. The following year, the subsidiary sells the land to an outside entity for a gain of $10,000.

How is the noncontrolling interest in net income affected in the year the subsidiary sells the land?

Select one:

A.No effect

B.Increase of $20,000

C.Decrease of $22,000

D.Decrease of $2,000

D is incorrect