On 1 January 20X5 Stephen Ltd gained control of Lang Ltd by acquiring 70% of its shares. Below is an extract of financial information of both entities as at 31 December 20X9, the end of the current year:

	Stephen Ltd	Lang Ltd
Net profit	90,000	80,000
Retained profits (opening)	120,000	100,000
Profit available	210,000	180,000
less Dividend paid	20,000	12,000
Retained profits (ending)	190,000	168,000
Share capital	150,000	90,000
Owners equity	340,000	258,000

Additional information:

• Lang sold inventory to Stephen during 20X8 for $19,000. The cost of inventory to Lang was $10,000. All of this inventory was still in stock as at 31 December 20X9.
• In 20X8, Stephen recognised $3,000 impairment for its investment in Lang.
• Stephen sold a vehicle to Lang on 31 December 20X7 for $24,000. The vehicle originally cost Stephen $40,000 and had zero residual value. Stephen depreciated the vehicle at the rate of 25% 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. Lang depreciates the vehicle also using the straight-line method.
• In 20X9 Lang paid $5,000 interest to Stephen for a loan (from Stephen to Lang). The interest on the loan is 10% p.a.
• The partial goodwill method is used.

Required:

a) Based on the information above, prepare all the necessary elimination entries at 31 December 20X9. (Reminder: Dates/Narrations are not required for the entries. There will be no marks allocated to workings.) (10 marks)

b) Show NCIs allocation for the year ended 31 December 20X9 for the following. (3 marks)

• Net profit
• Retained profits (opening)