Q3. A Ltd and B Ltd acquired their shareholdings of 60% of B Ltd and 100% of C Ltd respectively on 1 July 2017, at which date the shareholders equity was as follows:

	B Ltd	C Ltd
	$	$
Share Capital (1$ per share)	75,000	20,000
Reserves	10,000	1,000
Retained Earnings	16,000	4,500

The summarized accounts of the three companies as at 30 June 2019 are as follows:

	A Ltd	B Ltd	C Ltd
	$	$	$
Current Liabilities	26,000	17,750	5,250
Debentures	100,000	-	25,000
Share capital	100,000	75,000	20,000
Reserves	30,000	16,250	2,250
Retained earnings	39,000	38,000	14,000
Plant and Machinery	80,000	23,000	20,000
Current Assets	90,000	19,500	31,500
Inventory on hand	60,000	32,500	15,000
Debentures in C Ltd	-	20,000	-
Shares in B Ltd	65,000	-	-
Shares in C Ltd	-	52,000	-

The directors had adopted the partial goodwill method and applied the impairment test for goodwill annually and determined that a goodwill write-down of $3,090 is required for consolidation purposes as at 30 June 2019, being write-down of $440 and $2,650 in B Ltd and C Ltd respectively. The cumulative goodwill impairment write-downs for prior years totalled $3,090, being write-down of $440 and $2,650 in B Ltd and C Ltd respectively. Inventory on hand at 30 June 2019 included goods obtained from within the group and incorporated in the books at invoice prices which exceeded costs. Goods supplied by C Ltd to A Ltd were at $1,500 above cost; and goods supplied by C Ltd to B Ltd were at $1,200 above cost. Goods supplied by B Ltd to A Ltd were at $2,500 above cost. The tax rate is 30%.

Required:

a) Prepare consolidation journal entries at the acquisition date, and as at 30 June 2019. (19 marks)

b) Calculate non-controlling interests as at 30 June 2019, showing both direct and indirect non-controlling interests. (13 marks)

Show all relevant workings.