need help with an online question 3 of 10

Hello
The question

The carrying amounts of the Rays plc net assets were approximately equal to their fair
values.

The terms of the acquisition were that Sword plc would issue 3 new share in Sword plc for
every 7 shares acquired in Rays plc and would pay $1 on 30 April, 2015 for every share
acquired.

The Rays plc shares had a market value as at date of acquisition of $1 .80. Sword plc has
decided to measure the non-controlling interest at fair value with the Rays plc share price
being a reasonable indication of fair value

At 31 December, 2014 the retained earnings of Sword plc and Rays plc were $690,000 and
$980,000 respectively. Goodwill is to be impaired by $20 and Sword plc’s cost of capital is
6%

At what amount should the non-controlling interest be shown in the consolidated statement
of financial position for the Sword plc group as at 31 December, 2014? (Answer to the
nearest $000)

The answer

25% X 1,500,000 X 1.80 = 675,000
25% X (980,000 — 940,000) = 10,000
25%x(20,000)= ( 5,000)
nci at 31 December, 2014 680,000

I have calculated this part

25% X 1,500,000 X 1.80 = 675,000
25% X (980,000 — 940,000) = 10,000

but i don’t know this part
25%x(20,000)= ( 5,000)

i have tried to relate to the lectures but still no avail.