Perfect Corporation Acquired 70 Percent of Trevor Company's Shares on December

Perfect Corporation acquired 70 percent of Trevor Company's shares on December 31, 2008, for $140,000. At that date, the fair value of the noncontrolling interest was $60,000. On January 1, 2010, Perfect acquired an additional 10 percent of Trevor's common stock for $32,500. Summarized balance sheets for Trevor on the dates indicated are as follows:
Trevor paid dividends of $10,000 in each of the three years. Perfect uses the fully adjusted equity method in accounting for its investment in Trevor and amortizes all differentials over 5 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements.

-Based on the preceding information,Trevor Company's net income for 2009 and 2010 are:

A) $10,000 and $20,000 respectively.
B) $25,000 and $35,000 respectively.
C) $35,000 and $45,000 respectively.
D) $25,000 and $45,000 respectively.