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Rooney Co acquired 70% of the equity share capital of Marek Co, its only subsidiary, on January 1, 20X6. The fair value of the non-controlling interest in Marek Co at acquisition was $1·1m. At that date the fair values of Marek Co’s net assets were equal to their carrying amounts, except for a building which had a fair value of $1·5m above its carrying amount and 30 years remaining useful life.
During the year to December 31, 20X6, Marek Co sold goods to Rooney Co, giving rise to an unrealized profit in inventory of $550,000 at the year-end. Marek Co’s profit after tax for the year ended December 31, 20X6 was $3·2m.
What amount will be presented as the non-controlling interest in the consolidated statement of financial position of Rooney Co as at December 31, 20X6?
$2,060,000
$1,495,000
$1,880,000
$1,895,000
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