a). Explain why a non-controlling interest is entitled to a share of consolidated profit. (2 marks) b). On 1st July 2021 ABC Ltd purchased 90% of the issued share of DEF Ltd for $315,000. At that time the equity of DEF Ltd was as follows: Share Capital Retained Earnings $240,000 60,000 All identifiable assets and liabilities of DEF Ltd were recorded at fair value as at 1 July 2021 except for the following: Carrying Amount Fair Value Inventory $27,000 $28,600 Land 140,000 150,000 Machinery (net) 120,000 135,000 Liabilities 23,000 23,000 The machinery has a further life of 10 years, using straight line depreciation. Differences between the carrying amounts and fair values are recognised on consolidation. ABC Ltd uses the partial goodwill method. The tax rate is 30%. Required: i). Record the entries for the consolidation worksheet as at 1 July 2021. (8 marks) ii). Record the worksheet entry for the NCI share of equity at 1 July 2021. (2 marks)