An 80%-owned subsidiary sells merchandise to its parent at a
markup of 25% on cost. In 2018, the parent paid $725,000 for
merchandise received from the subsidiary. By year-end 2018, the
parent has sold $600,000 of the merchandise to outside customers
for $900,000, but still holds the other $125,000 in its ending
inventory.

What is the impact of the above information on noncontrolling
interest in net income, reported on the consolidated 2018 income
statement?

A. No effect

B. Subtract $20,000

C. Subtract $5,000

D. Subtract $25,000