Train Ltd acquired 60% of Engine Ltd for a cost of $345,600, when the equity of Engine Ltd consisted of:

Share Capital	$80,000
General Reserve	$4,000
Retained Earnings	$4,000

All the identifiable assets and liabilities of Engine Ltd were recorded at fair value except for the following:

	Carrying Amount	Fair Value
Equipment (cost $500,000)	$360,000	$400,000
Inventory	$80,000	$100,000

Required:

Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the Non-Controlling Interest (NCI) using the partial goodwill method.