On 1 January 20X5, Arthur Ltd gained control of Leon Ltd by acquiring 90% of its shares for $520 000. At this date, Leon had share capital of $300 000 and retained profits of $70 000. Below is an extract of financial information of both entities as at 31 December 20X6, the end of the current year:

	Arthur Ltd	Leon Ltd
Net profit	280 000	141 000
Retained profits (opening)	220 000	77 000
Profit available	500 000	218 000
less Dividend paid	150 000	80 000
Retained profits (ending)	350 000	138 000
Share capital	400 000	300 000
Owners equity	750 000	438 000

Additional information:

The partial goodwill method is used. Leon paid dividends in FY20X6.

Leon sold a vehicle to Arthur on 1 January 20X6 for $81 000. The vehicle originally cost Leon $96 000 and had a useful life of 8 years and zero residual value. Leon depreciated the vehicle using the straight-line method. The vehicle was 3 years old at the time of the intragroup sale. The vehicles residual value and useful life were not affected by the sale. Arthur depreciates the vehicle also using the straight-line method.

Required:

a) Prepare all the necessary consolidation journal entries at 31 December 20X6.

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 transaction? Do you need to deduct the gain from Leon's equity before calculating the NCI share of its equity?

c) Which entity charged more depreciation expense as a result of the intragroup transaction? Do you need to adjust the depreciation difference from Leon's equity before calculating the NCI share of its equity?

d) Calculate the NCI allocation for the following equity items of Leon for the year ended 31 December 20X6. Show workings.