Noncontrolling interest, upstream deferred intercompany inventory profits and Acquisition Accounting Premium Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2012. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $100,000 and no recorded book value. On the date of acquisition, the patent had 5 years of remaining useful life and the parent company amortizes its intangible assets using straight line amortization. During the year ended December 31, 2013, the subsidiary recorded sales to the parent in the amount of $110,000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2013. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2013: Investor Investee Income statement: Revenues $2,400,000 $322,000 Equity income 107,000 Expenses (1,600,000) (160,000) Net income $907,000 $162,000 Retained earnings statement: BOY retained earnings $752,000 $40,000 Net income 907,000 162,000 Dividends declared (64,000) (40,000) EOY retained earnings $1,595,000 $162,000 Balance sheet: Current assets $800,000 $102,000 Equity investment 235,000 Noncurrent assets 4,000,000 300,000 Total assets $5,035,000 $402,000 Liabilities $2,640,000 $160,000 Common stock & APIC 800,000 80,000 Retained earnings 1,595,000 162,000 Total liabilities & stockholders' equity $5,035,000 $402,000 Based on this information, determine the balance for Noncontrolling Interest: O$32,400 $24,200 O$58,750 O$18,750