On 1 January 20X2, Perry Ltd gained control of Santos Ltd by acquiring 80% of its shares for $283 000. At this date, Santos had share capital of $250 000 and retained profits of $10 000. All assets and liabilities of Santos were recorded at their fair values. Below is an extract of financial information of both entities as at 31 December 20X3, the end of the current financial year (FY20X3):

	Perry Ltd	Santos Ltd
Net profit	240 000	44 000
Retained profits (opening)	150 000	61 000
Profit available	390 000	105 000
less Dividend paid	120 000	0
Retained profits (ending)	270 000	105 000
Share capital	450 000	250 000
Owners equity	720 000	355 000

Additional information:

The partial goodwill method is used. Impairment of consolidation goodwill was assessed to be $8 000 in FY20X3.

During FY20X3, Perry sold inventories to Santos for $110 000. The inventories originally cost Perry $86 000. 75% of the inventories were sold by Santos to external parties as at 31 December 20X3.

Santos sold a vehicle to Perry on 1 January 20X2 for $159 000. The vehicle originally cost Santos $180 000 and had a zero residual value. Santos depreciated the vehicle at the rate of 20% p.a. using the straight-line method. The vehicle was 2 years old at the time of the intragroup sale. The vehicles residual value and useful life were not affected by the sale. Perry depreciates the vehicle also using the straight-line method.

Required:

a) Prepare all the necessary consolidation journal entries at 31 December 20X3.

Note 1) Use the provided journal entry template to enter your answer. 2) Workings/calculations or narrations are NOT required. 3) The template should provide enough space. However, if you find the space is insufficient in the template or encounter a table formatting issue, write your journal entries below the template and ensure labelling DR or CR.

b) Which entity made the gain in the intragroup inventory sales transaction? Do you need to deduct the gain from Santos' equity before calculating the NCI share of its equity?

c) Which entity made the gain in the intragroup vehicle sales transaction? Do you need to deduct the gain from Santos' equity before calculating the NCI share of its equity?

d) Calculate the NCI allocation for the following equity items of Santos for the year ended 31 December 20X3. Show workings.