Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp. At the time of the acquisition, the fair values of the net asset required approximated their book values. Based upon the following information,

Phelps internally generated net income: $250000

Shore internally generated net income: $50000

Intercompany profits in beginning inventory purchased from shore: $10000

Intercompany profit in ending inventory purchased from shore: $15000

1. what is consolidated net income?

A. $300,000

B. $295,000

C. $286,000

D. $305,000

2. what amount does Phelps Co. record as subsidiary income? A. $50,000 B. $44,000 C. $40,000 D. $36,000

3.what amount of income is attributable to the noncontrolling interest? A. $10,000 B. $9,000 C. $11,000 D. $7,000