organisational structure characteristics

Question 3 Borak Ltd acquired 80 percent share capital of Moon Ltd on 1 July 2018 for a cost of -$4800000. As at the date of acquisition, all assets and liabilities of Moon Ltd were fairly valued except a land that has a carrying value $450,000 less than the fair value. The recorded balance of equity of Moon Ltd as at 1 July 2018 were as: Share capital Retained earnings General Reserve Total $2,400,000 $ 600,000 $ 1.200.000 $4,200.000 Additional information: The management of Borak Ltd values non-controlling interest at the proportionate share of Moon Ltd's identifiable net assets. Moon Ltd has a profit after tax of $600,000 for the year ended 30 June 2019. During the financial year, Moon Ltd sold inventory to Borak Ltd for $360,000. The inventory costs Moon Ltd $180,000 to produce. 25 percent of the inventory are still on the hand of Borak Ltd as at 30 June 2019. During the year, Moon Ltd paid $180,000 in management fees of Borak Ltd. On 1 July 2018, Moon Ltd sold an item of plant to Borak Ltd $240,000. The equipment had a carrying value of $180,000 (cost $300,000; accumulated depreciation $120,000). At the date of sale, it was expected that the equipment had a remaining life of 4 years and no residual value. Tax rate is 30%. Required (a) Based on the above information, calculate the non-controlling interest as at 30 June 2019 (b) Pass necessary journal entry to recognise the non-controlling interest as at 30 June 2019