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Pepe, Incorporated acquired 6 0 % of Devin Company on January 1 , 2 0 2 3 . On that date Devin sold equipment to

Pepe, Incorporated acquired 60% of Devin Company on January 1,2023. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2023 and 2024, respectively. Pepe uses the equity method to account for its investment in Devin.
Assuming there are no excess amortizations or other intra-entity transactions, compute the net income attributable to the noncontrolling interest of Devin for 2024.
a. $122,000
b. $126000
c. $129,600
d. $130,800
e. $130,000
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