Pepe Incorporated acquired 60% of Devin Company on January 1 2010. On that date

Pepe Incorporated acquired 60% of Devin Company on January 1 2010. On that date Devin sold equipment to Pepe for $45000. The equipment had a cost of $120000 and accumulated depreciation of $66000 with a remaining life of 9 years. Devin reported net income of $300000 and $325000 for 2010 and 2011 respectively. Pepe uses the equity method to account for its investment in Devin. Compute the non-controlling interest in the net income of Devin for 2011.