On 31 December 2014, Hugh Ltd gained control of Perry Ltd by acquiring 90% of its shares for $256 000. At this date, Perry had share capital of $200 000 and retained profits of $40 000. All assets and liabilities of Perry were recorded at their fair values. Below is an extract of financial information of both entities as at 31 December 2016, the end of the current financial year (FY2016):

	Hugh Ltd	Perry Ltd
Net profit	90 000	70 000
Retained profits (opening)	105 000	58 000
Retained profits (ending)	195 000	128 000
Share capital	350 000	200 000
Owners' equity	545 000	328 000

Additional information:

The partial goodwill method is used. Perry didn't pay dividends in FY2016.

In FY20X5, Hugh sold inventories to Perry for $20 000. The inventories originally cost Hugh $15 500. All of the inventories were still in stock as at 31 December 2016.

Hugh sold a vehicle to Perry on 31 December 2014 for $70 000. The vehicle originally cost Hugh $120 000 and had a zero residual value. Hugh depreciated the vehicle at the rate of 10% p.a. using the straight-line method. The vehicle was 5 years old at the time of the intragroup sale. The vehicle's residual value and useful life were not affected by the sale. Perry depreciates the vehicle also using the straight-line method.

Required:

a) consolidation journal entries at 31 December 2016.

Use journal entry WITH DR or CR.

b) Which entity made the gain in the intragroup transactions? Do you need to deduct the gain from Perry's equity before calculating the NCI share of its equity?

c) Calculate the NCI allocation for the following equity items of Perry for the year ended 31 December 2016.WITH workings.

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