Layne Ltd acquired 90 per cent of the share capital of Beachly Ltd on 1 July 2014 for a cost of $500000. As at the date of acquisition all assets of Beachly Ltd were fairly valued, other than land that had a carrying amount $50000 less than its fair value. The recorded balances of equity in Beachly Ltd as at 1 July 2014 were:

	$
Share capital	350000
Retained earnings	100000
	450000

Additional information

• The management of Layne Ltd values any non-controlling interest at the proportionate share of Beachly Ltds identifiable net assets.
• Beachly Ltd had a profit after tax of $70000 for the year ended 30 June 2015.
• During the financial year to 30 June 2015 Beachly Ltd sold inventory to Layne Ltd for a price of $60000. The inventory cost Beachly Ltd $30000 to produce, and 25 per cent of this inventory was still on hand with Layne Ltd as at 30 June 2015.
• During the year Beachly Ltd paid $10000 in management fees to Layne Ltd.
• On 1 July 2014 Beachly Ltd sold an item of plant to Layne Ltd for $40000 when it had a carrying amount of $30000 (cost of $50000, accumulated depreciation of $20000). At the date of sale it was expected that the plant had a remaining useful life of four years, and no residual value.
• The tax rate is 30 per cent.

(a)Prepare the consolidation adjustments for the year ended 30 June 2015. 1. Fair value adjustment

2. Fair value adjustment 3. Elimination of investment 4. Elimination of balance of pre-acquisition capital and reserves and recognition of non-controlling interest at acquisition date 5. Elimination of intra group sales 6. Elimination of unrealised profit in closing inventory 7. Consideration of the tax paid or payable on the sale of inventory that is still held within the group 8. Elimination of intragroup management fees 9. Reversal of profit recognised on sale of asset and reinstatement of cost and accumulated depreciation 10. Impact of tax on profit on sale of item of plant 11. Reinstating accumulated depreciation in the statement of financial position 12. Consideration of the tax effect of the reduction in depreciation expense13.Non-controllinginterestsin2015profits(b)Calculatethenon-controllinginterestsinthe2015profits