On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $310,500 when K-Techs book value was $410,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $207,000. At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $27,000.

In 2020, K-Tech reports $22,500 net income and declares no dividends. At the end of 2021, the two companies report the following figures (stockholders equity accounts have been omitted):

	French Company Carrying Amounts				K-Tech Company Carrying Amounts				K-Tech Company Fair Values
Current assets	$	625,000			$	305,000			$	325,000
Trademarks		265,000				205,000				285,000
Patented technology		415,000				155,000				182,000
Liabilities		(395,000	)			(125,000	)			(125,000	)
Revenues		(905,000	)			(405,000	)
Expenses		495,000				305,000
Investment income		Not given

Note: Parentheses indicate a credit balance.

In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interests share of the subsidiarys income and the ending balance of the noncontrolling interest in the subsidiary?

a) $34,640 and $245,280.

b) $31,960 and $250,640.

c) $26,600 and $234,480.

d) $40,000 and $216,000.