Murray Plc owns 60% of the equity share capital of Federer Ltd. For the year ended 31 December 20X6 Federer reported profit after tax of pound200,000. During the year Federer had sold goods to Murray Plc for pound60,000 at cost plus 25%. At the year-end 70% of these goods were unsold. What is the profit attributable to the non-controlling interest in the consolidated statement of comprehensive income for the year ended 31 December 20X6?

$76,640

Explanation:

The solution of profit attributable to the non-controlling interest is provided below:-

Percentage of equity share capital = 100% - Equity share capital percentage

= 100% - 60%

= 40%

As we know that if profit percentage is 25% on cost so sale percentage is equals to 20%

So,

Profit on sale value = Sale percentage × Sale value

= 20% × $60,000

= $8,400

now,

Total adjust profit = Profit after tax - Unrealized profit on unsold stock

= $200,000 - $8,400

= $191,600

and, after the total adjust profit finally

Profit attributable to the non-controlling interest = Total adjust profit × Percentage of equity share capital

= $191,600 × 40%

= $76,640

answer blank(1).(2); sharpe;