On January 1, 2019, Paulson Corporation purchased 65% of the outstanding common stock of Sun Company, which became a subsidiary of Paulson. No goodwill was reported on this acquisition. Differences between book value and fair value of the net identifiable assets of Sun Company on January 1, 2019, were limited to the following:

Book value Fair value

Inventories (FIFO) $ 19,000 $ 18,500

Building (net) [remaining life: 5 years; straight-line

depreciation; no salvage value] 45,000 40,000

Sun's cost of goods sold was $38,000 in 2019. Sun reported an income of 30,000 in 2020. The noncontrolling interest in net income for the year ended December 31, 2020 (second year after business combination) was

1. $10,150
2. $10,850
3. $10,325
4. $10,675

Please show the calculations "in Detail"

Thanks