Piano Ltd has a 44% interest in a joint venture, Mandolin Ltd, in which it invested $87,000 on 1 July 2014. The equity of Mandolin Ltd at the acquisition date was:

Share capital

Retained earnings

$30000

120000

All the identifiable assets and liabilities of Mandolin Ltd were recorded at amounts equal to their fair values. Profits and dividends for the years ended 30 June 2015 to 2017 were as follows:

Profit before tax Income tax expense Dividends paid

2015 $74,000 $22,000 $18,000

2016 $63,000 $22,000 $19,000

2017 $70,000 $21,000 $15,000

The consolidation worksheet entries to account for Piano Ltd's interest in the joint venture, Mandolin Ltd. (assume Piano Ltd does prepare consolidated financial statements) for the year ended 30 June 2017 are as follows:

Dr Investment in Mandolin xxx

Cr Retained Earnings (1/7/16) xxx

Dr Investment in Mandolin yyy

Cr. Share of profit of associates & JVs yyy

Dr Dividend Revenue zzz

Cr Investment in Mandolin zzz

I wonder how you got the number XXX as 24,750, which is the solution ? I got 54,000. Here is my working: 120,000*45%=54,000. Dont know where it went wrong though?