Consolidation – Non-controlling Interest (NCI)
Partial Goodwill Method
**Prepare Consolidation Worksheet Entries as of June 30, 2019. Assume a profit for Carl Ltd for the year ended June 30, 2019 of $61,400

Laura Ltd purchased 97% of the issued shares of Chris Ltd for $1,759,000 on 1 July 2018 when Chris Ltd's equity was as follows;

Capital social	$703,600
Asset revaluation surplus	$ 527,700
Retained earnings	$263,850

As of this date, Chris Ltd had not recorded any goodwill and all identifiable assets and liabilities were recorded at fair value, except for the following;

Account	Cost	carrying amount	fair value	Future life (years)
inventories	$52,800	$ 58,100
Tierra	$132,000	$145,000
Equipment	$205,000	$164,000	$197,000	8
Chris Ltd identified on the acquisition date a contingent liability related to a lawsuit in which Chris Ltd was sued by a former supplier			$21,000
Chris Ltd held an internally generated, unregistered patent with the fair value of:			$53,000
Chris Ltd had internally generated unrecorded research and development in progress with the fair value of:			$40,000

60% of the inventory on hand as of July 1, 2018 was sold on June 20, 2019. The additional useful life of the assets is listed in the table above. The partial goodwill method is used and the tax rate is 30%