The following are financial statements of H Ltd and its subsidiary G Ltd for the year ending 30 June 2019. The following are in $'000 (thousands of dollars).

H Ltd

G Ltd

Sales revenue

690 (H)

580 (G)

Cost of goods sold

-464 (H)

-238 (G)

Gross profit

226 (H)

342 (G)

Dividends received from G Ltd

74.4 (H)

0 (G)

Management fee revenue

26.5 (H)

0 (G)

Profit on sale of plant

35 (H)

0 (G)

Expenses

0 (H)

0 (G)

Administrative expenses

-30.8 (H)

-38.7 (G)

Depreciation

-24.5 (H)

-56.8 (G)

Management fee expense

0 (H)

-26.5 (G)

Other expenses

-101.1 (H)

-77 (G)

Profit before tax

205.5 (H)

143 (G)

Tax expense

-61.5 (H)

-42.2 (G)

Profit for the year

144 (H)

100.8 (G)

Retained earnings - 30 June 2018

319.4 (H)

239.2 (G)

463.4 (H)

340 (G)

Dividends paid

-137.4 (H)

-93 (G)

Retained earnings - 30 June 2019

326 (H)

247 (G)

Balance Sheet

Shareholders' equity

Retained earnings

326 (H)

247 (G)

Share capital

350 (H)

200 (G)

Current liabilities

Accounts payable

54.7 (H)

46.3 (G)

Tax payable

41.3 (H)

25 (G)

Non-current liabilities

Loans

173.5 (H)

116 (G)

945.5 (H)

634.3 (G)

Current assets

Accounts receivable

59.4 (H)

62.3 (G)

Inventory

92 (H)

29 (G)

Non-current assets

land and building

224 (H)

326 (G)

Plant

299.85 (H)

355.8 (G)

Accumulated depreciation

-85.75 (H)

-138.8 (G)

Investment in G Ltd

356 (H)

0 (G)

945.5 (H) Total amount

634.3 (G) Total amount

Other Information:

H Ltd acquired its 80% interest in G Ltd on 1 July 2010, 9 years earlier. At that date capital and reserves of G Ltd were:

Share capital$200,000

Retained earnings$170,000

$370,000

At the date of acquisition all assets were considered to be fairly valued.

-The management of H Ltd values any NCI at the proportionate share of G Ltd's identifiable net assets.

-During the year, H Ltd made total sales to G Ltd of $65,000, while G Ltd sold $52,000 in inventory to H Ltd.

-The opening inventory in H Ltd as at 1 July 2018 included inventory acquired from G Ltd for $42,000 that had cost G Ltd $35,000 to produce.

-The closing inventory in H Ltd includes inventory acquired from G Ltd at a cost of $33,600. This cost G Ltd $28,000 to produce.

-The closing inventory of G Ltd includes inventory acquired from H Ltd at a cost of $12,000. This cost H Ltd $9,600 to produce.

-The management of H Ltd believed that goodwill acquired was impaired by $3,000 in the current financial year. Previous impairments of goodwill amounted to $22,500.

-On 1 July 2018 H Ltd sold an item of plant to G Ltd for $116,000 when its carrying value in H Ltd's account was $81,000 (cost $135,000, accumulated depreciation of $54,000). This plant is assessed as having a remaining useful life of 6 years.

-G Ltd paid $26,500 in management fees to H Ltd.

-The tax rate is 30%.

Required:

1)Prepare the intragroup transaction entries based on the financial statements and other information (12 marks)

2)Calculate the non-controlling interest in G Ltd (8 marks)