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Faja owns 8 5 % of Child Inc. In the last year, Child sold inventory costing $ 5 0 0 , 0 0 0 to

Faja owns 85%of Child Inc. In the last year, Child sold inventory costing $500,000 to Faja for $600,000. At year-end, Faja had 1/3 of this inventory remaining.
How much will the parent adjust it's investment income from Child at year-end? How much will the NCI income need to be adjusted?
decrease income from sub by $28,333;decrease NCI income by$5,000
decrease income from sub by $33,333;NCI income will not change
decrease income from sub by $3,125;decrease NCI income by $9,375
decrease income from sub by $20,833;decrease NCI income by $12,500

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