On 1 July 20X5, HAND Ltd gained control of FOOT Ltd by acquiring 70% of its shares for $90,000. At this date, FOOTLtd's equity consisted of: share capital $70,000 and retained profits $40,000.

Below is an extract of financial information of both entities as at 30 June 20X9, the end of the current year:

	HAND Ltd ($)	FOOT Ltd ($)
Net profit	80,000	70,000
Retained profits (opening)	120,000	50,000
Profit available	200,000	120,000
less Dividend paid	20,000	9,000
Retained profits (ending)	180,000	111,000
Share capital	150,000	70,000
Owners equity	330,000	181,000

Additional information:

• The partial goodwill method is used. Impairment of consolidation goodwill was assessed, on 30 June 20X8, to be $2,000.
• Coogee sold a vehicle to Palm on 30 June 20X6 for $36,000. The vehicle originally cost Coogee $40,000 and had zero residual value. Coogee depreciated the vehicle at the rate of 20% p.a. using the straight-line method. The vehicle was 1 year old at the time of the intragroup sale. The vehicles residual value and remaining useful life were not affected by the intragroup sale. Palm depreciates the vehicle also using the straight-line method.
• Coogee sold inventory to Palm in March 20X9 at the price of $5,000. The mark up on the sale was $2,000. As at 30 June 20X9, 80% of the inventory was still in stock.
• Coogee provided $7,000 worth of consulting services to Palm during May 20X9. Palm paid for the services before year end.

Required:

a) Based on the information given in the question, prepare all the necessary consolidation elimination entries at 30 June 20X9. (Reminder: Dates/Narrations are not required for the entries. There will be no marks allocated to workings.) 16 marks

b) Calculate NCIs allocation for the year ended 30 June 20X9 for the following (Show workings). 4 marks

• Net profit
• Retained profits (opening)