Question $20$

On January $1,20$X$9,$ Pirate Corporation acquired $80$ percent of Sea$-$Gull Company's common stock for $$160,000$ cash. The fair value of the noncontrolling interest at that date was determined to be $$40,000.$ Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:

$$

$$Pirate Corp.Sea$-$Gull Corp.Cash$$$$60,000$$$20,000$Accounts Receivable$80,00030,000$Inventory$90,00040,000$Land$100,00040,000$Buildings and Equipment$200,000150,000$Less: Accumulated Depreciation$(80,000)(50,000)$Investment in Sea$-$Gull Corp.$160,000$Total Assets$$$$610,000$$$230,000$Accounts Payable$$$$110,000$$$30,000$Bonds Payable$95,00040,000$Common Stock$200,00040,000$Retained Earnings$205,000120,000$Total Liabilities and Equity$$$$610,000$$$230,000$

At the date of the business combination, the book values of Sea$-$Gull's net assets and liabilities approximated fair value except for inventory, which had a fair value of $$45,000,$ and land, which had a fair value of $$60,000.$

Based on the preceding information, what amount will be reported as noncontrolling interest in the consolidated balance sheet prepared immediately after the business combination?

$$15,000$

$$46,000$

$$40,000$

$$0$