On January 1, 2021, Harley Company bought 15% of Buttercup Company. Harley paid $200,000 for these shares, an amount that exactly equaled the proportionate book value of Buttercup. On January 1, 2022, Buttercup acquired 80% ownership of Harley. The following data are available concerning Buttercups acquisition of Harley:

Consideration transferred for 80% interest, January 1, 2022: $1,000,000

Harleys reported book value, January 1, 2022: 1,200,000

Excess fair value over book value (assigned to trademarks) is amortized over 20 years. The initial value method is used by both companies. The following information is available regarding Harley and Buttercup:

Harley Company					Buttercup Company
Year	Reported Separate Income	Dividend Income	Dividends Declared		Reported Separate Income	Dividend Income	Dividends Declared
2021	$50,000	$7,500	$12,000		$150,000	$0	$50,000
2022	60,000	10,500	16,000		180,000	12,800	70,000

Compute the net income attributable to the noncontrolling interest for 2022.

Multiple Choice

• $13,600.

• $10,575.

• $14,100.

• $10,200.

• $14,600.