FAAT Inc. purchased 70% of 20,000 outstanding voting shares of HFP Inc. for $616,000 cash on Jan 1, 2018. On that day, the market price for HFPs shares is $18.4. Both parties agreed that the equipment had a remaining useful life of 5 years from the date of acquisition. HFPs bank loan will mature on January 1, 2023. The balance sheets of both companies right before the acquisition date, as well as HFPs fair market values on the acquisition date, are below:

In addition, both companies use a FIFO system, and HFPs inventories on the date of acquisition were all sold to outsiders of the combined entity during the year following the acquisition. Both companies have Dec 31 as the year-end for financial reporting. FAAT uses the cost method to account for its equity investments. The management of FAAT decided to write off $1,000 impairment for the goodwill associated with the acquisition on Jan. 1, 2018, for consolidation.

The followings are the financial statements of the two companies for the fiscal year endedDecember 31, 2018:

Required: Assume the acquisition happened on April 1, 2018, calculate the NCI in profit for the year ended December 31, 2018.

CashAccountsReceivableInventoryEquipmentAccumulatedamortizationLandGoodwillTotalAssetsCurrentLiabilitiesBankloanCommonSharesRetainedEarningsTotalLiabilitiesandEquityFAATInc.$1,450,000$100,000$60,000$80,000(30,000)40,000$1,700,000$100,000$260,000$800,000$540,000HFPInc.$315,000$85,000$45,000$95,000(15,000)$105,000$10,000$640,000$280,000$80,000$210,000$70,000$640,000FairValue$315,000$85,000$40,000$90,000$188,000$280,000$70,000 LAAT Inc. NFP Inc. Income Statements: SalesDividendsRevenue$831,500$3,500$300,000 Less: Expenses: COGSDepreciationInterestexpenseGoodwillOtherexpensesNetIncome$240,000$10,000$12,000$1,000$9,000$563,000$180,000$20,000$40,000$r250$9,750 Retained Earnings Statements: Balance,Jan.12018NetIncomeLess:DividendsBalance,Dec.31,2018$540,000$563,000($10,000)$1,093,000$70,000$50,000($5,000)$115,00 CashAccountsReceivableInventoryEquipmentAccumulatedamortizationLandGoodwillTotalAssetsCurrentLiabilitiesBankloanCommonSharesRetainedEarningsTotalLiabilitiesandEquityFAATInc.$1,450,000$100,000$60,000$80,000(30,000)40,000$1,700,000$100,000$260,000$800,000$540,000HFPInc.$315,000$85,000$45,000$95,000(15,000)$105,000$10,000$640,000$280,000$80,000$210,000$70,000$640,000FairValue$315,000$85,000$40,000$90,000$188,000$280,000$70,000 LAAT Inc. NFP Inc. Income Statements: SalesDividendsRevenue$831,500$3,500$300,000 Less: Expenses: COGSDepreciationInterestexpenseGoodwillOtherexpensesNetIncome$240,000$10,000$12,000$1,000$9,000$563,000$180,000$20,000$40,000$r250$9,750 Retained Earnings Statements: Balance,Jan.12018NetIncomeLess:DividendsBalance,Dec.31,2018$540,000$563,000($10,000)$1,093,000$70,000$50,000($5,000)$115,00