SB Portland Inc. (Portland) owns

Portland Inc. (Portland) owns 80% of Seattle Inc. (Seattle) and uses the cost method to account for its investment. The 2023 income statements of both companies are shown below.

	Portland	Seattle
Gross profit	$100,000	$50,000
Miscellaneous revenues (losses)	(30,000)	(20,000)
Depreciation expense	(20,000)	(15,000)
Income tax expense	(20,000	(6,000)
Net Income	$30,000	$9,000

On January 1, 2023, Seattle acquired equipment for $7,000 and sold it the same day to Portland for $12,000. The equipment had a remaining useful life of 10 years on that date. Both companies are subject to an effective tax rate of 40%.

TB 07-15 Which of the following is the correct amount...

Which of the following is the correct amount of consolidated net income attributable to the noncontrolling interest in Portland's 2023 consolidated income statement?

Multiple Choice

$1,260

$2,340

$2,700

$1,200