On January 1, 2011, Palm, Inc. purchased 80% of the stock of Stone Corp. for $4,000,000 cash. Prior to the acquisition, Stone had 100,000 shares of stock outstanding. On the date of acquisition, Stones stock had a fair value of $52 per share. During the year Stone reported $280,000 in net income and paid dividends of $50,000. What is the balance in the noncontrolling interest account on Palms balance sheet on December 31, 2011?

a. $1,000,000

b. $1,040,000

c. $1,086,000

d. $1,096,000

e. $2,096,000