185. On 31 August, 2014 when Flue PLC acquired 70% of the $2,000,000 50c equity shares of Preya PLC, the retained earnings of Flue PLC and Preys PLC were $540,000 and $640,000 respectively and the market value of the Preys PLC shares was $2,60
The carrying amount of the Preys PLC net assets were equal to their fair values with the exception of a building that had a fair value $2,400,000 in greater than its carrying value. At the date of acquisition of building had an estimated remaining useful life of 8 years.
The terms of acquisition were that Flue PLC would issue 1 new share in Flue PLC for every 4 shares acquired in Preys PLC and would pay $1.20 immediately for each share acquired plus a further $1.20 on 1 September, 2016 for every 10 shares acquired.
The Flue PLC shares had a market value as at date of acquisition of $2.80. Flue PLC has decided to measure the NCI at fair value with the Preys PLC share price being a reasonable indication of fair value.
At 31 December, 2014 the retained earnings of Flue PLC and preys PLC were $690,000 and $720,000 respectively. Flue PLC’s Cost of Capital is 7% and goodwill is not impaired.
At what amount should the NCI be shown in the consolidated statement of financial position for the Flue PLC group as at 31 December, 2014? (Answer to the nearest $000)