On January 1,2009,Company a Acquired 80 Percent of the Common

On January 1,2009,Company A acquired 80 percent of the common stock and 60 percent of the preferred stock of Company B,for $400,000 and $60,000,respectively.At the time of acquisition,the fair value of the common shares of Company B held by the noncontrolling interest was $100,000.Company B's balance sheet contained the following balances:
For the year ended December 31,2009,Company B reported net income of $100,000 and paid dividends of $40,000.The preferred stock is cumulative and pays an annual dividend of 10 percent.

-Based on the preceding information,the eliminating entry to assign income to noncontrolling interest to prepare the consolidated financial statements for Company A as of December 31,2009,will include:

A) a debit to Income to Noncontrolling Interest for $24,000.
B) a credit to Dividends Declared - Preferred Stock for $10,000.
C) a credit to Dividends Declared - Common Stock for $8,000.
D) a credit to Noncontrolling Interest for $12,000.