On 1st July, 2018 Murray Ltd acquired 70% of the share capital of Darling Ltd for $150,000,000.

Equity of Darling Ltd at acquisition date was:

Share Capital $ 100,000,000

General Reserve $ 50,000,000

Retained Earnings $ 30,000,000 All assets and liabilities of Darling Ltd were recorded at fair value on acquisition. Ignore Tax effects. Required:

(a) Complete the worksheet below using the partial goodwill method with the NCI measured at the proportionate share of the acquirees identifiable net assets.

(Elimination of Investment in Darling Ltd Darling Ltd (S) $,000 Murray Ltd (70% of Darling) (P) $,000 30% NCI $,000 Fair Value of consideration transferred Less: FV of identifiable assets acquired & liabilities assumed Share capital on acquisition date 100,000 General reserve-acquisition date 50,000 Retained earnings-acquisition date 30,000 Fair value adjustment Goodwill on acquisition Non-controlling interest (b) Prepare the consolidation adjustments and eliminations journal entries and recognise the NCI in the pre-acquisition equity of Darling Ltd, using the partial goodwill method with the NCI measured at the proportionate share of the acquirees identifiable net assets.