Question 3 Consolidated Financial Statements - Non-controlling Interests On 1 July 2019, Yellow Ltd acquired 75% of Blue Ltd's share capital for $950,000. At acquisition date, Blue Ltd's equity consisted of: Share capital Retained earnings $1,000,000 175,000 At acquisition date, all the identifiable assets and liabilities of Blue Ltd were recorded at amounts equal to fair value, except for: Carrying Amount Fair Value Remaining Useful Life Inventory 10,000 12,000 Equipment (cost $120,000) $60,000 $75,000 10 years Additional Information: The revalued inventory was sold during the year ended 30 June 2020. The revalued equipment was still held by Blue Ltd at 30 June 2021 and is depreciated using the straight-line method. Details of the determination of Blue Ltd's retained earnings balance at 30 June 2021 are provided below: Retained earnings (01/07/20) Profit Dividends paid $220,000 88,000 308,000 (16,000)