On June $30,2022,$ Past Company $($Past$)$ sold some land to its subsidiary, Sloan Ltd$.($Sloan$),$ for $$380,000.$ The land had cost Past $$200,000$ when it was acquired three years previously.

The transaction was subject to income tax at a rate of $20\%.$ On April $1,2024,$ Sloan sold the land to an outside party for $$475,000.$

This transaction was also subject to income tax at a $20\%$ rate.

Past owns $75\%$ of the outstanding shares of Sloan and accounts for its investment using the cost method.

What effect will the adjustment for the realization of the intercompany gain $($in the preparation of the consolidated income statement$)$ have on the noncontrolling interest in income for $2024?$

Multiple Choice

It will have no effect on the non$-$controlling interest in income.

It will decrease the non$-$controlling interest in income by $$36,000.$

It will increase the non$-$controlling interest in income by $$36,000.$

It will increase the non$-$controlling interest in income by $$45,000.$