Problem
At the beginning of current fiscal year Vea Ltd acquired 70% of the equity capital of Collins Ltd at a cost of $1 million. All of the assets of Collins Ltd were fairly stated and the total shareholders' funds of Collins Ltd were $1.9 million, as follows:
Share oapital $1,200,000
Retained earnings $700,000
$1,900,000
As at the year-end of the same fiscal year Vea Ltd holds inventory purchased from Collins Ltd during the year on which there is unrealized profit of $2 400. Given a tax rate of 30%, what is the dollar amount on the year-end related to adjusting non-controlling interests for the overstatement of inventory at the end of that year?