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Question - On July 2020 Phlox Limited acquired a 60% controlling interest in Scilla Limited. Scilla reported a $500,000 profit after tax for the year ended 30 June 2021 in its general ledger. Included in the $500,000 is a profit after tax of $4,200 relating to Scilla selling inventory to Phlox. Phlox still has this inventory on hand at 30 June 2021.
What is the non-controlling interest's (NCI's) share of Scilla's profit after tax that will be recognised in the cons statements for the year ended 30 June 2021?
A. $201,680.
B. $198,320.
C. $200,000.
D. $195,800.
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