FMCG Ltd (who is in retail business) has to prepare its consolidated financial statements at 30 June 2019. FMCG Ltd had acquired its 85% interest in RG Ltd on 1 July 2017, that is, two years earlier. At that date the capital and reserves of RG Ltd were: Share capital $200,000 Retained earnings $170,000 At the date of acquisition all asset of RG Ltd considered to be fair valued. The financial statements of FMCG Ltd and its subsidiary RG Ltd at 30 June 2019 are as follows: Statement of financial position Description FMCG LTD(000) RG ltd(000) Current assets Account receivable 60 62 Inventory 90 30 Non current Assets Land and building 225 325 Plant at cost 300 356 Accumulated depeciation (86) (140) Investment in RG ltd 360 - Total 949 633 Current liabilities Account payable 56 45 Taxation payable 42 24 Non current liabilities Loans payable 175 118 Shareholders equity Share capital 350 200 Retained earnings 326 246 Total 949 633 Detailed reconciliation of opening and closing retained earnings Description FMCG LTD (000) RG Ltd (000) Sales revenue 700 575 Cost of goods sold (465) (235) Gross profit 235 340 Expenses Administrative expenses (30) (40) Management fee expenses - (26) Depreciation (25) (55) Other expenses (102) (76) Other income Management fee income 26 - Dividend from RG Ltd 75 - Gain on sale of palnt 35 - Profit before tax 214 143 Tax expenses (65) (43) Profit for the year 149 100 Retained earning -30 June 2018 315 240 464 340 Dividend paid (138) (94) Retained earning -30 June 2019 326 246 Following are the list of transactions between FMCG Ltd and its subsidiary RG Ltd during the year 1 July 2018 to 30 June 2019 : RG Ltd paid $26,000 in management fee to FMCG Ltd . FMCG management determined that the goodwill is impaired by $5,000 in the current financial year. Previous accumulated impairment amounted to $22,000. During the year FMCG Ltd made total sales to RG Ltd of $60,000, while RG Ltd sold $50,000 in inventory to FMCG Ltd. The opening inventory in FMCG Ltd as at 1 July 2018 included inventory acquired from RG Ltd for $40,000 that had cost RG Ltd $33,000 to produce. The closing inventory in FMCG Ltd includes inventory purchased from RG Ltd at a cost of 33,000. The cost of this inventory to RG Ltd was $27,000. The closing inventory of RG Ltd includes inventory acquired from FMCG Ltd at a cost of $12,000. This cost FMCG Ltd $9,000 to produce . On 1 July 2018, FMCG Ltd sold an item of equipment to RG Ltd for $120,000 when its carrying value in FMCG Ltd was $80,000 (cost of $132,000, accumulated depreciation of $52,000). Remaining useful life for this equipment is being assessed as six years. Management of FMCG Ltd values any non-controlling interest at the proportionate share of RG Ltds identifiable net assets. Applicable tax rate is 30%. All calculated amounts are to be rounded to the nearest whole dollar. Required: Prepare the consolidation eliminations journals necessary and required before preparation of consolidated financial statements of FMCG Ltd and its subsidiary (state narrations to journals, provide clear workings and explanations). Also prepare a calculation of non-controlling interest at acquisition date, between acquisition date and the beginning of the reporting period and for current reporting period.