On 1 July 20X2 Megan Ltd purchased an 80% controlling interest in Chris Ltd for a consideration of $350 000. On that date, the pre-control equity of Chris consisted of:

Paid-up capital	200 000
Retained profits	150 000
General reserve	50 000
Total equity	400 000

The extract of financial information for the two entities, for the year ended 30 June 20X4, is provided below:

	Megan	Chris
Net profit	142 000	135 500
Retained profits (opening)	620 000	225 000
Profits available	762 000	360 500
Transfer to general reserve	20 000	5 000
Dividends declared	45 000	24 000
Retained profits	697 000	331 500
Paid-up capital	250 000	200 000
Reserves	50 000	55 000
Owners equity	997 000	586 500

Additional information:

• The partial goodwill method is used and during 20X4 the consolidation goodwill was impaired by $5 000.
• During May 20X3 Chris sold inventory to Megan at $40 000. The inventory originally cost Chris $25 000. All of this inventory was still in stock as at 30 June 20X4.
• On 30 June 20X3, Chris purchased from Megan an item of equipment for $40 000. The equipment originally cost Megan $90 000. As at 30 June 20X3, the equipment had a carrying amount of $30 000, a remaining useful life of 5 years and a residual value of zero. Megan depreciated the equipment using the straight-line depreciation method. Chris depreciates the equipment also using the straight-line depreciation method.
• Megan provided $7 000 worth of computing services to Chris during 20X4. Chris paid for the services before the year-end.

Required:

a) Based on the information given in the question, prepare all the necessary consolidation journal entries at 30 June 20X4. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are NOT required.)

b) Calculate the NCI allocation for the following items of Chris for the year ended 30 June 20X4. Show workings.

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