Apple Ltd purchased 60% of the shares totalling $65,000 in Banana Ltd and Banana Ltd wholly owns Cherry Ltd which was purchased for $52,000. Both investments were acquired on 1 July 2018. On this date, shareholders equity was valued at:

Banana Ltd

Cherry Ltd

Share capital

75,000

20,000

General reserve

10,000

1,000

Retained earnings

16,000

4,500

The financial statements of the entities within the group at 30 June 2020 are as follows:

Apple Ltd:

Total assets

295,000

Total liabilities

126,000

Share capital

100,000

General reserve

30,000

Retained earnings

39,000

Banana Ltd:

Debentures in Cherry Ltd

20,000

Total assets

147,000

Total liabilities

17,750

Share capital

75,000

General reserve

16,250

Retained earnings

38,000

Cherry Ltd:

Total assets

66,500

Debentures

25,000

Total liabilities

30,250

Share capital

20,000

General reserve

2,250

Retained earnings

14,000

The tax rate is 30%. All non-controlling interest are valued at the proportionate share of the acquirees identifiable net assets. Inventory on hand at 30 June 2020 included goods obtained from within the group as follows:

-Apple Ltd purchased from Banana Ltd, sale price was $10,000 and cost $7,500.

-Apple Ltd purchased from Cherry Ltd, sale price was $20,000 and cost $18,500.

-Banana Ltd purchased from Cherry Ltd, sale price was $15,000 and cost $13,800.

The directors had applied the impairment test for goodwill annually and determined that a write-down of $3,090 is required for consolidation purposes at 30 June 2020 (write-down of goodwill in Banana Ltd is $440 and write-down of goodwill in Cherry Ltd is $2,650) with the same amounts deemed to be attributable for the prior period. All debentures (including the debenture from Cherry Ltd to Banana Ltd) is due 30 June 2030.

Required:

In the space provided - show goodwill entries, intragroup transactions and calculate direct and indirect non-controlling interest.