AAA Ltd (retail business) has to prepare its consolidated financial statements at 30 June 2017. AAA Ltd had acquired its 85% interest in BC Ltd on 1 July 2015, that is, two years earlier. At that date the capital and reserves of BC Ltd were:

share capital	200000
retained earnings	170000

At the date of acquisition, all asset of BC Ltd considered being fair valued. The financial statements of AAA Ltd and its subsidiary BC Ltd at 30 June 2017 are as follows: Statement of financial position

Description	AAA Ltd ($000)	BC Ltd ($000)
Current assets
Accounts receivable	60	62
Inventory	90	30
Non-current assets
Land and building	225	325
Plant-at cost	300	356
Accumulated depreciation	-86	-14
lnvestment in BC Ltd	360	-
Total	949	633
Current Liabilities
Accounts payable	56	45
Taxation payable	42	24
Non-current liabilities
Loans payable	175	118
Shareholders' equity
Share capital	350	200
Retained earnings	326	246
Total	949	633

A detailed reconciliation of opening and closing retained earnings,

Description	AAA Ltd ($000)	BC Ltd ($000)
Sales revenue	700	575
Cost of goods sold	-465	-235
Gross profit	235	340
Expenses
Administration expenses	-30	-40
Management fee expenses	-	-26
Depreciation	-25	-55
Other expenses	-102	-76
Other income
Management fee income	26	-
Dividends from BC Ltd	75	-
Gain on sale of plants	35	-
Profit before tax	214	143
Tax expense	-65	-43
Profit for the year	149	100
Retained earnings- 30 June 16	315	240
	464	340
Dividends paid	-138	-94
Retained earnings- 30 June 17	326	246

Following are the list of transactions between AAA Ltd and its subsidiary BC Ltd during the year 1 July 2016 to 30 June 2017:

BC Ltd paid $26,000 in management fee to AAA Ltd.

AAA management determined that the goodwill is impaired by $5,000 in the current financial year. Previously accumulated impairment amounted to $22,000.

During the year AAA Ltd made total sales to BC Ltd of $60,000, while BC Ltd sold $50,000 in inventory to AAA Ltd.

The opening inventory in AAA Ltd as at 1 July 2016 included inventory acquired from BC Ltd for $40,000 that had cost BC Ltd $33,000 to produce.

The closing inventory in AAA Ltd includes inventory purchased from BC Ltd at a cost of 33,000. The cost of this inventory to BC Ltd was $27,000.

The closing inventory of BC Ltd includes inventory acquired from AAA Ltd at a cost of $12,000. This cost AAA Ltd $9,000 to produce.

On 1 July 2016, AAA Ltd sold an item of equipment to BC Ltd for $120,000 when its carrying value in AAA Ltd was $80,000 (cost of $132,000, accumulated depreciation of $52,000). The remaining useful life for this equipment is being assessed as six years.

Management of AAA Ltd values any non-controlling interest at the proportionate share of BC Ltds identifiable net assets.

The applicable tax rate is 30%.

All calculated amounts are to be rounded to the nearest whole dollar.

Required:

Prepare the consolidation eliminations journals necessary and required before preparation of consolidated financial statements of AAA Ltd and its subsidiary (state narrations to journals, provide clear workings and explanations).

Also prepare a calculation of non-controlling interest at the acquisition date, between acquisition date and the beginning of the reporting period and for the current reporting period.

[goodwills, NCI, 13 Journals with two accounts, 5 Jornals with three accoutns, Developing a maro and using marco for calculation]