On 1 July 2019 Frankie Ltd acquired 80% of the issued shares of Sinatra Ltd for $250,000. At that date, Sinatra Ltd's equity consisted of share capital of $200.000 and retained earnings of $300.000. At action date, all identifiable net assets of Sinatra Ltd were recorded at amounts equal to fair value.

At 1 July 2019, the fair value of the non-controlling interest was $50,000.

Required:

a) Calculate goodwill using the partial goodwill method.

b) Explain the reason why an adjustment is required to the NCI share of profit, for a non-current asset revalued to fair value at acquisition date.