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

580

Cost of goods sold

-464

-238

Gross profit

226

342

Dividends received from G Ltd

74.4

-

Management fee revenue

26.5

-

Profit on sale of plant

35

-

Expenses

Administrative expenses

-30.8

-38.7

Depreciation

-24.5

-56.8

Management fee expense

-

-26.5

Other expenses

-101.1

-77

Profit before tax

205.5

143

Tax expense

-61.5

-42.2

Profit for the year

144

100.8

Retained earnings - 30 June 2018

319.4

239.2

463.4

340

Dividends paid

-137.4

-93

Retained earnings - 30 June 2019

326

247

Balance Sheet

Shareholders' equity

Retained earnings

326

247

Share capital

350

200

Current liabilities

Accounts payable

54.7

46.3

Tax payable

41.3

25

Non-current liabilities

Loans

173.5

116

945.5

634.3

Current assets

Accounts receivable

59.4

62.3

Inventory

92

29

Non-current assets

land and building

224

326

Plant

299.85

355.8

Accumulated depreciation

-85.75

-138.8

Investment in G Ltd

356

-

945.5

634.3

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)