Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012.

2012 2013 2014

Purchases by Posito $8000 $12000 $15000

Ending inventory on Posito's books $1200 $4000 $3000

Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends.

2012 2013 2014

Gargiulo's net income $70000 $85000 $94000

Dividends paid by Gargiulo $10000 $10000 $15000

Compute the non-controlling interest in Gargiulo's net income for 2014.

A.

$9,400.

B.

$9,375.

C.

$9,425.

D.

$9,325.

E.

$8,485.