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On January 1, 2018, Harrison Ltd acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The fair value of the total net

On January 1, 2018, Harrison Ltd acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The fair value of the total net assets of Starr Company was assessed at $1,200,000.

Starr Company reported a net profit of $70,000 in 2018 and $90,000 in 2019, with dividend declarations of $30,000 each year. Apart from its investment in Starr Company, Harrison had a net profit of $220,000 in 2018 and $260,000 in 2019 and declared dividends of $40,000 each year.

During the year ending 31 December 2019, Harrison sold inventory to Starr for a price of $90,000. The inventory costs Harrison Ltd $50,000 to produce. 40% of the inventory is still on hand of Starr Company as at 31 December 2019.

The management of Harrison Ltd measures non-controlling interest at fair value.

Required:

Based on the information given, what should be the total balance of the non-controlling interests reported in the consolidated financial statement as at December 31 2019 (Ignore the tax effect)? Show your calculations of NCI at each of the 3 stages.

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