Full Ltd acquired 80% of the share capital of Partial Ltd on 1 July 2011 for $350 000, when all assets of Partial Ltd were fairly valued.

Additional information:

1. Share capital and reserves are:

At 1 July 2015 At 1 July 2020

Share Capital $200 000 $200 000

Retained earnings $175 000 $425 000

No intragroup transactions took place between 1 July 2015 and 30 June 2019.

2. The only intragroup transaction for the year ending 30 June 2020, was Full Ltd sold inventory to Partial Ltd for a price of $120,000. The inventory cost Full Ltd $90,000 to produce. At 30 June 2020, Partial Ltd still had 75% of this inventory on hand, but by 30 June 2021, all of this inventory had been sold to external parties.

3. During the financial year ending 30 June 2021, Partial Ltd sold inventory to Full Ltd for a price of $240,000. The inventory cost Partial Ltd $160 000 to produce. By 30 June 2021, Full Ltd had sold 40% of this inventory to external parties.

4. At 1 January 2021, Full Ltd sold an item of plant to Partial Ltd, making a profit on the sale of $10,000. At the date of sale, the plant had accumulated depreciation of $25 000 and a remaining life of 4 years.

5. For the year ending 30 June 2021, Full Ltd declared and paid $30 000 in dividends, while Partial Ltd declared and paid dividends of $20 000.

6. Full Ltd measures any NCI using the fair value (ie full goodwill) method.

The tax rate is 30 per cent.

Required:

1. Identify the three steps of the NCI calculation:

2. Not enough information is provided in this question to complete one of these steps.
   1. Which step cannot be completed?
   2. What other information do you require?

3. Calculate goodwill on acquisition and prepare all consolidation/elimination journals for the year ending 30 June 2021 for items 1 to 6 only. Narrations are required on all journals. Journals must be presented in a professional manner, and numbered with a reference corresponding to the item of additional information it relates to.

4. Assume Full Ltd measures any NCI at the NCIs proportionate share of Partial Ltds identifiable net assets.
   3. Which of the 3 steps of the NCI calculation will this alter?
   4. Which journal number (from part c) will this alter?
   5. Calculate goodwill on acquisition and provide the updated journal assuming the proportionate share of Partial Ltds identifiable net assets is applied