Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2010. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Demers earns income and pays dividends as follows:

Assume the partial equity method is applied. Compute the non-controlling interest in Demers at December 31, 2010. Please provide detailed calcuation.

A.

$135,600.

B.

$114,000.

C.

$112,000.

D.

$100,000.

E.

$110,600.