Assuming Solar Company has paid no dividends, what are the noncontrolling interest€™s share of the subsidiary€™s income and the ending balance of the noncontrolling interest in the subsidiary?
a. $26,000 and $230,000.
b. $28,800 and $252,000.
c. $34,400 and $240,800.
d. $40,000 and $252,000.

West Company acquired 60 percent of Solar Company for $300,000 when Solar€™s book value was $400,000. The newly comprised 40 percent noncontrolling interest had an assessed fair value of $200,000. Also at the acquisition date, Solar had a trademark (with a 10-year life) that was undervalued in the financial records by $60,000. Also, patented technology (with a 5-year life) was undervalued by $40,000. Two years later, the following figures are reported by these two companies (stockholders€™ equity accounts have beenomitted):

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West Current assets Patented technology Revenues. Irnvestment income Book Value $620,000 260,000 410,000 (390,000) 900,000) 500,000 Not given Company Book Value $300,000 200,000 150,000 (120,000) (400,000) Company Falr Value $320,000 280,000 150,000 (120,000)