On 1 January 20X5, Scott Ltd gained control of Hagen Ltd by acquiring 70% of its shares for $340 000. At this date, Hagen had share capital of $300 000 and retained profits of $50 000. All assets and liabilities of Hagen were recorded at their fair values. Below is an extract of financial information of both entities as at 31 December 20X6, the end of the current financial year (FY20X6):

	Scott Ltd	Hagen Ltd
Net profit	240 000	86 000
Retained profits (opening)	150 000	60 000
Profit available	390 000	146 000
less Dividend paid	120 000	40 000
Retained profits (ending)	270 000	106 000
Share capital	450 000	300 000
Owners equity	720 000	406 000

Additional information:

• The partial goodwill method is used. Hagen paid dividends in FY20X6.
• During FY20X6, Scott sold inventories to Hagen for $20 000. The inventories originally cost Scott $10 000. 70% of the inventories were sold by Hagen to external parties as at 31 December 20X6.
• Hagen sold a vehicle to Scott on 1 January 20X6 for $60 000. The vehicle originally cost Hagen $90 000 and had a zero residual value. Hagen 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. Scott 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 intragroup transactions did the parent entity (Scott) make a profit from? Do you need to deduct the amount from the subsidiary (Hagen)'s equity before calculating the NCI share of its equity?

c) Which intragroup transactions did the subsidiary (Hagen) make a profit from? Do you need to deduct the amount from the subsidiary (Hagen)'s equity before calculating the NCI share of its equity?

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

	NCI allocations ($)
Net profit
Retained profits (opening)