Question 1 Green Ltd purchased 90 per cent of the issued capital and in the process gained control over Maroon Ltd on 1 July 2018. Green Ltd paid cash consideration of $3 700 000 for Maroon Ltd at this time. The fair value of the net assets of Maroon Ltd at purchase was represented by: During the period ended 30 June 2020, the following transactions were recorded: a) Maroon Ltd paid management fees of $100 000 to Green Ltd. b) Maroon had an operating profit of $405 000. c) Maroon Ltd declared a dividend of $98 000 during the period. d) Green purchased inventory from Maroon for $100 000. The inventory cost Maroon Ltd $85 000 and at the end of the period Green had 35 per cent of that inventory still on hand. e) Maroon's opening retained earnings was $810 000. f) Goodwill has been determined to have been impaired by $13,600. g) Companies in the group use perpetual inventory systems and accrue dividends when they are declared by subsidiaries. h) There were no other inter-company transactions. The tax rate is 30%. Required: 1) Prepare the consolidation adjustments for the year ended 30 June 2020, based on the information provided above (10 marks) 2) Calculate NCI for the year ended 30 June 2020, based on the information provided above. Show full workings. (5 marks)

calculate NCI