On January 1, 2022, Paulson Corporation purchased 65% of the outstanding common stock of Sun Company, which became a subsidiary of Paulson. No goodwill was reported on this acquisition. Differences between book value and fair value of the net identifiable assets of Sun Company on January 1, 2022, were limited to the following: Book value Fair value Inventories (FIFO) $ 19,000 $ 18,500 Building (net) [remaining life: 5 years; straight-line depreciation; no salvage value] 45,000 40,000 Suns cost of goods sold was $38,000 in 2022. Sun reported an income of 20,000 in 2023. The noncontrolling interest in net income for the year ended December 31, 2023 (second year after business combination) was

a. $7,350

b. $7,175

c. $6,825

d. $6,650