Jacaranda Limited acquired a 75% ownership interest in

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:

30 June 20X6 30 June 20X7

Jacaranda 100 000 125 000

Frangipani 45 000 70 000

Gardener 20 000 35 000

The tax rate is 30%. 

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

a. $14 812.50

b. $15 487.50

c. $17 175.00

d. $21 987.50

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