On 31 December 20X4, Hugh Ltd gained control of Jackman Ltd by acquiring 80% of its shares for $150,000. At this date, Jackman had share capital of $100,000 and retained profits of $20,000. Below is an extract of financial information of both entities as at 31 December 20X6, the end of the current year:

	Hugh Ltd	Jackman Ltd
Net profit	90 000	30 000
Retained profits (opening)	120 000	46 000
Profit available	210 000	76 000
less Dividend paid	15.000	10 000
Retained profits (ending)	195 000	66 000
Share capital	350 000	100 000
Owners' equity	545 000	166 000

Additional information:

• The partial goodwill method is used

Jackman sold a vehicle to Hugh on 31 December 20X4 for $45,000. The vehicle originally cost Jackman $80,000 and had a zero residual value. Jackman 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. Hugh depreciates the vehicle also using the straight-line method.

Required:

a) Prepare all the necessary consolidation journal entries at 31 December 20X6.

b) Which entity made the gain in the intragroup transaction? Should the gain be deducted from Jackman's equity before calculating the NCI share of its equity?

c) Which entity incurred higher depreciation expense due to the intragroup transaction? Should the depreciation difference be adjusted in Jackman's equity before calculating the NCI share of its equity?

d) Calculate the NCI allocation for the following equity items of Jackman for the year ended 31 December 20X6. Show workings.

NCI allocations ($)