On January 1 2009, Nichols Company acquired 80% of Smith Company' non-voting, cumulative preferred stock. The consideration transferred by Nichols was $1,200,000 for the common and $124,000 for the preferred. Any excess acquisition-date fair value over book value is considered goodwill. The capital structure of Smith immediately prior to the acquisition is: s common stock and 40% of its 20. If Smith's net income is $100,000 in the year following the acquisition, A. the portion allocated to the common stock (residual amount) is $92,800. B. $10,800 preferred stock dividend will be subtracted from net income attributed to common stock in arriving at noncontrolling interest in subsidiary income. C.the noncontrolling interest balance will be $27,200. D. the preferred stock dividend will be ignored in noncontrolling interest in subsidiary net income because Nichols owns the noncontrolling interest of preferred stock. E. the noncontrolling interest in subsidiary net income is $30,800