Beatles Ltd acquired 90 per cent of the share capital of Rolling Stones Ltd on 1 July 2014 for a cost of $490 000. As at the date of acquisition all assets of Rolling Stones Ltd were fairly valued, other than land whose fair value was $20,000 more than its carrying amount. The recorded balances of equity in Rolling Stones Ltd as at 1 July 2014 were:

	$
Share capital	320,000
Retained earnings	180,000
	500,000

Knowing that:

The management of Beatles Ltd values any non-controlling interest at the proportionate share of Rolling Stones Ltd.s identifiable net assets.

Rolling Stones Ltd had a profit after tax of $100,000 for the year ended 30 June 2015.

During the year Rolling Stones Ltd paid management fees for $35,000 to Beatles Ltd.

On 1 July 2014 Rolling Stones Ltd sold equipment to Beatles Ltd for $50,000 when it had a carrying amount of $35,000 (cost of $70,000, accumulated depreciation of $35,000). At the date of sale it was expected that the equipment had a remaining useful life of 5 years, and no residual value.

During the financial year ending 30 June 2015 Rolling Stones Ltd sold inventory to Beatles Ltd for a price of $142,000. The inventory costs Rolling Stones Ltd $98,000 to produce, and 40 per cent of this inventory was still on hand with Beatles Ltd as at 30 June 2015.

The tax rate is 30 per cent.

REQUIRED:

Prepare the consolidation adjustments for the year ended 30 June 2015. Show all necessary working to derive your answer and provide narrations explaining each consolidation worksheet journal entry.

Non-controlling interests in the 2015 profits are NOT required.