Lanark Ltd is a stationary retail business in the Melbourne market. Recently, Lanark Ltd expand the market to the office equipment market and decided to take over Shibuca Ltd, of medium size business specializing in renting office equipment.

The acquisition consisted of Lanark Ltd acquiring 100% of Shibuca Ltd shares for a consideration of $600,000 on 1 July 2021.

At that date the statement of financial position of Shibuca Ltd is as follows:

Statement of financial position 1 July 2021
Cash	15,000	Loans	300,000
Account receivables	45,000	Account payables	20,000
Inventory	90,000
Buildings	405,000	Share Capital	300,000
Plant	150,000	Retained Earnings	85,000

Moreover, you have this additional information on the company:

• Shibuca Ltd has internally generated its brand name “Shibuca” whose fair value is estimated to be $50,000;
• All the assets and liabilities of Shibuca Ltd are fairly valued at the date of the acquisition.

REQUIRED

1. Explain whether there are non-controlling interests in Shibuca Ltd.

2. Identify if any goodwill arises from the acquisition and calculate (if any) its amount.

3. Considering that no intra-group transactions occurred between Lanark Ltd and Shibuca Ltd in the financial year, provide the journal entries for the elimination of the investment in the subsidiary to prepare the consolidated financial statement on 30 June 2022.