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

York Ltd.

Queens Company

McGill Company

90% of Queens Company

80% of McGill Company

70% of Carleton Ltd.

10% of 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

Queens Company

22,000

McGill Company

26,700

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 corporation

Profit made by selling corporation

York Ltd.

$10,000

McGill Company

1,000

Carleton Ltd.

2,400

Carleton Ltd.

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

Required:

(a) Calculate consolidated profit attributable to Yorks shareholders for Year 2.

^{(b) Calculate the amount of consolidated p r ofit attributable to non-cont r olling inte r est that would appear on the Y ear 2 consolidated income statement.}

^{(c) W ill the consolidation adjustment for un r ealized p r ofits beany di f fe r ent if McGill Company sells inventory to Carleton Ltd. or Y ork Ltd.? Use the r ev- enue r ecognition principle to explain your answe r .}