Consolidated profit or loss statement Niland Ltd paid $700000 on 1 January 20X6 for 90% of the equity of McKie Ltd, which then comprised: $ 400 000 60 000 Paid-up capital Contingencies reserve General reserve Retained profits 40 000 100 000 The profit or loss statement, plus the note on retained profits of the two companies for the year ending 31 December 20X6, are shown on the next page. All appropriations are to be appropriated from post-control profit. The parent has accrued its share of subsidiary dividends. At the year-end, Niland Ltd held $20000 inventory purchased during the year from McKie Ltd. This inventory cost Mckie $16000. In January 20X6, Niland sold a three-year-old computer to McKie for $24000. At the sale date, the computer's carrying amount was $22 500 and it had an expected remaining life of two years. McKie is depreciating the computer straight-line over the two years, assuming no residual amounts. $2000 impairment of consolidation goodwill was recognised for the year. There has been no impairment of the investment in McKie. Financial statements at 31 December 20X6: Extracts Niland Ltd Mckie Ltd $ $ 120 000 600 000 240 000 360000 48000 72 000 Profit or loss Profit before income tax Income tax expense Profit or loss Changes in equity Retained profits Retained profits 1 January 20X6 Profit or loss Profit available less Appropriations Declared dividend Transfer to general reserve Retained profits 31 December 20X6 80 000 100 000 360 000 72 000 440 000 172 000 40 000 160 000 200000 80 000 30 000 102 000 equired: 1) Prepare journal entries for a consolidation at 1 January 20X6. 5) Provide details of NCI in the group entity at 31 December 20X6. :) Prepare a worksheet for the consolidated profit or loss statement for the year ending 31 December 20X6