Intercompany shareholdings of an affiliated group during the year ended December 31, Year 2, were as follows:

York Ltd.

90% of Queen's Company

80% of McGill Company

Queen's Company

70% of Carleton Ltd.

10% of McGill Company

McGill Company

60% of Trent Ltd.

The equity method is being used for intercompany investments, but no entries have been made in Year 2. The profits before equity method earnings for Year 2 were as follows:

Profit

York Ltd.54,000

Queen's Company22,000

McGill Company26,700

Carleton Ltd.15,400

Trent Ltd.11,600

Intercompany profits before taxes in the December 31, Year 2, inventories and the selling companies were as follows:

Selling CorporationProfit Made by Selling Corporation

York Ltd.10,000

McGill Company1,000

Carleton Ltd.2,400

Use income tax allocation at a 40% rate. Assume that there is no acquisition differential for any of the inter-company shareholdings.

Required

(a) Calculate consolidated profit attributable to York's shareholders for Year 2.

(b) Calculate the amount of consolidated profit attributable to non-controlling interest that would appear on the Year 2 consolidated income statement.

(c) Will the consolidation adjustment for unrealized profits be any different if McGill Company sells inventory to Carleton Ltd. or York Ltd.? Use the revenue recognition principle to explain your answer.