On 1 July 20X5 Perth Ltd gained control of Sydney Ltd by acquiring 60% of its shares for $80,000. At this date, Sydney had share capital $70,000 and retained profits $50,000. Below is an extract of financial information of both entities as at 30 June 20X9, the end of the current year:

	Perth Ltd	Sydney Ltd
Net profit	40,000	20,000
Retained profits (opening)	90,000	60,000
Profit available	130,000	80,000
less Dividend paid	15,000	6,000
Retained profits (ending)	115,000	74,000
Share capital	150,000	70,000
Owners’ equity	265,000	144,000

Additional information:

• The partial goodwill method is used.
• Sydney sold inventory to Perth during 20X9 for $18,000. The cost of inventory to Sydney was $10,000. Half of this inventory was still on hand at the year end.
• Perth sold a vehicle to Sydney on 30 June 20X7 for $17,000. The vehicle originally cost Perth $40,000 and had zero residual value. Perth depreciated the vehicle at the rate of 20% p.a. using the straight-line method. The vehicle was 3 years old at the time of the intragroup sale. The vehicle’s residual value and useful life were not affected by the sale. Sydney depreciates the vehicle also using the straight-line method.
• Sydney provided $8,000 worth of consulting services to Perth during 20X9. Perth paid for the services before the year end.
• In 20X8 Perth recognised $1,000 impairment for its investment in Sydney.

Required:

a)      Based on the information given in the question, prepare all the necessary elimination entries at 30 June 20X9. (Reminder: Dates/Narrations are not required for the entries. There will be no marks allocated to workings.) 11 marks

b)      Show NCI’s allocation for the year ended 30 June 20X9 for the following (Reminder: There will be no marks allocated to workings.) 2 marks