Jacaranda Limited acquired a 75% ownership interest in Frangipani Limited on 30 June 20X5.On the same day,Frangipani Limited acquired a 60% ownership interest in Gardener Limited.The following interentity transactions have taken place between the entities in the group during the years ended 30 June 20X6 and 30 June 20X7:
On 1 July 20X5 Gardener sold an item of plant to Jacaranda for a profit of $25 000.The remaining useful life of the plant at the date of transfer was 2 years.
On 1 September 20X5,Gardener paid a dividend of $100 000 from profits earned prior to 30 June 20X5.
Jacaranda lent $500 000 to Gardener on 1 January 20X6.Interest charged on the loan for the year ended 30 June 20X6 was $20 000 and for the year ended 30 June 20X7 was $40 000.
On 31 May 20X6 Frangipani sold inventory to Gardener for $15 000.Profit earned on the sale was $1500.Gardener sold the inventory to external parties on 1 August 20X6.
Details of profits earned by entities within the group for the years ended 30 June 20X6 and 30 June 20X7 are:

The tax rate is 30%.
The NCI share of profit in the Frangipani group for the year ended 30 June 20X6 is:

Question

Jacaranda Limited acquired a 75% ownership interest in Frangipani Limited on 30 June 20X5.On the same day,Frangipani Limited acquired a 60% ownership interest in Gardener Limited.The following interentity transactions have taken place between the entities in the group during the years ended 30 June 20X6 and 30 June 20X7:
On 1 July 20X5 Gardener sold an item of plant to Jacaranda for a profit of $25 000.The remaining useful life of the plant at the date of transfer was 2 years.
On 1 September 20X5,Gardener paid a dividend of $100 000 from profits earned prior to 30 June 20X5.
Jacaranda lent $500 000 to Gardener on 1 January 20X6.Interest charged on the loan for the year ended 30 June 20X6 was $20 000 and for the year ended 30 June 20X7 was $40 000.
On 31 May 20X6 Frangipani sold inventory to Gardener for $15 000.Profit earned on the sale was $1500.Gardener sold the inventory to external parties on 1 August 20X6.
Details of profits earned by entities within the group for the years ended 30 June 20X6 and 30 June 20X7 are:

The tax rate is 30%.
The NCI share of profit in the Frangipani group for the year ended 30 June 20X6 is:

Quizplus · Accepted Answer

The Answer of Jacaranda Limited acquired a 75% ownership interest in Frangipani Limited on 30 June 20X5.On the same day,Frangipani Limited acquired a 60% ownership interest in Gardener Limited.The following interentity transactions have taken place between the entities in the group during the years ended 30 June 20X6 and 30 June 20X7:
On 1 July 20X5 Gardener sold an item of plant to Jacaranda for a profit of $25 000.The remaining useful life of the plant at the date of transfer was 2 years.
On 1 September 20X5,Gardener paid a dividend of $100 000 from profits earned prior to 30 June 20X5.
Jacaranda lent $500 000 to Gardener on 1 January 20X6.Interest charged on the loan for the year ended 30 June 20X6 was $20 000 and for the year ended 30 June 20X7 was $40 000.
On 31 May 20X6 Frangipani sold inventory to Gardener for $15 000.Profit earned on the sale was $1500.Gardener sold the inventory to external parties on 1 August 20X6.
Details of profits earned by entities within the group for the years ended 30 June 20X6 and 30 June 20X7 are:

The tax rate is 30%.
The NCI share of profit in the Frangipani group for the year ended 30 June 20X6 is:

Jacaranda Limited Acquired a 75% Ownership Interest in Frangipani Limited