Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. 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:

	2019		2020		2021
Net income	$	100,000			$	120,000			$	130,000
Dividends		40,000				50,000				60,000

Assume the equity method is applied.

Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

a.

$24,000.

b.

$14,400.

c.

$12,600.

d.

$18,400.

e.

$22,600.