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

Perfect Corporation acquired 70 percent of Storm Company's shares on December 31,20X8,for $140,000.At that date,the fair value of the noncontrolling interest was $60,000.On January 1,20X0,Perfect acquired an additional 10 percent of Storm's common stock for $32,500.Summarized balance sheets for Storm on the dates indicated are as follows:
Storm paid dividends of $10,000 in each of the three years.Perfect uses the fully adjusted equity method in accounting for its investment in Storm 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,Storm Company's net income for 20X9 and 20X0 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.