Buster Ltd owns 85 per cent of the issued capital of Rhymes Ltd.During the period ended 30 June 2006 the operating profit of Rhymes Ltd was $680,000.Buster Ltd bought goods for $540,000 from Rhymes.The goods cost Rhymes $400,000 and at the end of the period none of this inventory was still on hand.Rhymes paid Buster a management fee of $100,000 during the period.Goodwill on consolidation was impaired by $30,000.Rhymes paid a dividend of $40,000 at the end of the period. What is the minority interest in the operating profit of Rhymes Ltd?

Question

Quizplus · Accepted Answer

To calculate the minority interest in the operating profit of Rhymes Ltd, we first need to calculate the profit attributable to the minority interest.

Operating profit of Rhymes Ltd = $680,000 
Profit attributable to the minority interest = 15% of $680,000 = $102,000

Therefore, the correct answer is option C) $102,000.

Buster Ltd Owns 85 Per Cent of the Issued Capital