On 1 July 2018 Cool Ltd purchased an 80% controlling interest in Sunny Ltd for a consideration of $350,000. On that date the pre-control equity of Sunny consisted of:

Paid up capital	$200 000
Retained profits	$150 000
General reserve	$ 50 000
Total equity	$400 000

The net assets of Sunny Ltd were recorded at fair values.

Relevant financial data for the two companies, for the year ending 30 June 2020, is provided on the worksheet below. Further information:

• During May 2019 Sunny Ltd sold inventory to Cool Ltd at a profit of $8,000. This inventory was sold by Cool Ltd to external parties during the month of July 2019.
• On 30 June 2020 Cool Ltd purchased from Sunny Ltd an item of equipment for $40,000. The equipment has a cost of $90,000 and a carrying amount of $28,000. The equipment has a remaining useful life of 4 years and a residual value of zero.

Consolidation worksheet as at 30 June 2020

	Cool	Sunny	Sum	Eliminations			Group	Allocation
				DR		CR		NCI	Parent
Sales	700 000	300 000	1 000 000
Cost of sales	520 000	140 000	660 000
Gross profit	180 000	160 000	340 000
Interest revenue	7 000	-	7 000
Other revenues	19 200	7 500	26 700
Gain on sale of equipment	-	12 000	12 000
Interest expense	-	7 000	7 000
Other expenses	64 200	37 000	101 200
Net profit	142 000	135 500	277 500					???
Retained profits 1 July 2019	620 000	225 000	845 000

REQUIRED

For the year 2020, what is the amount of net profit that NCI is entitled to?

a.31100

b.23100

c.26300

d.24700