On 1 January 2012, Purple acquired 85% interest in Green Pte Ltd (Green) for $450,000 when its identifiable net assets were represented by share capital of $200,000 and retained profits of $285,000. The following fair value adjustments were made at the date of acquisition:

- Trademark which was not recorded in the books of Green was valued at $58,000 and has indefinite useful life.

- An allowance for impairment of trade debtors was estimated at $17,700. This was not provided for in Greens books.

- Contingent liability relating to a pending lawsuit was estimated at an expected value of $20,000. This lawsuit was filed by a French government agent for a possible breach of contract. Green did not recorded this possible loss in its books.

Purple acquired 25% of the issued shares of Almond Pte Ltd (Almond) on 1 January 2017 for $160,000. At the date of acquisition of Almond, the identifiable net assets were represented by share capital of $300,000 and retained profits of $350,000. All the identifiable assets were recorded at fair values at the date of acquisition, except for an artificial intelligence machine (called Roboto) which was assessed to have a fair value of only $37,800, but was reported in Almonds books at the carrying amount of $44,100. From this date of acquisition, the machine has a remaining useful life of 7 years

The following intra-group transactions took place during the year ended 31 December 2019:

1) A technological innovation caused the recoverable amount of Roboto to take a drastic plunge to $10,000 on 31 December 2019, although the earlier useful life assessment was unchanged.

2) Green sold inventories (which had a purchase cost of $60,000) to Purple for a gross profit margin of 20%. 10% of these inventories were still on hand as at 31 December 2019.

3) The lawsuit with the French government agency was concluded in mid 2019, and Green was ordered to pay damages of $82,000 to the plaintiff. This amount was duly settled by a cashiers order on 10 July 2019.

The following information was extracted from the financial reports of the three companies for the year ended 31 December 2019:

Purple ($) Green ($) Almond ($)

Share capital 890,000, 200,000, 300,000 Respectively

Retained profits as at 1 January 2019: 1,234,000, 920,000, 420,000 Respectively

Profit after tax for 2019: 59,000, 45,000, 72,000 Respectively

Dividends paid in 2019: 0, 0, 20,000 Respectively

Purple Groups accounting policy states that non-controlling interests are measured as a proportion of net identifiable assets as at acquisition date.

Qns 1: Prepare the consolidation journal entries on 31 December 2019 (with appropriate narrations) which relate to the associate Almond only.

Qns 2: Determine the following figures reported in the Consolidated Balance Sheet on 31 December 2019:

i) Investment in associate

ii) Non-controlling interests