On 31 December 20X4 Hugh Ltd gained control of Jackman Ltd by acquiring 80% of its shares for $250,000. At this date, Jackman had share capital of $200,000 and retained profits of $45,000. 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	60 000
Retained profits (opening)	120 000	86 000
Profit available	210 000	146 000
less Dividend paid	15 000	40 000
Retained profits (ending)	195 000	106 000
Share capital	350 000	200 000
Owners equity	545 000	306 000

Additional information:

• The partial goodwill method is used.
• Jackman sold a vehicle to Hugh on 31 December 20X4 for $36,000. The vehicle originally cost Jackman $60,000 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 vehicles 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. (Using the provided journal entry template to enter your answer; workings/calculations or narrations are NOT required.)

b) Which entity made the profit in the intragroup transaction? Do you need to deduct the amount from Jackman's equity before calculating the NCI share of its equity?

c) Which entity overstated/understated the depreciation expense resulting from the intragroup transaction? Do you need to adjust the amount from 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 ($)
Net profit
Retained profits (opening)