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. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: 2010 2011 2012 Net income Dividends $100,000 $120,000 $130,000 40,000 50,000 60,000 4. How much does Pell record as Income from Demers for the year ended December 31, 2012 if the parent ses the: Equity method Partial equity method Initial value method . Compute the noncontrolling investment balance in Demers at December 31, 2012