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-30June'18 319.4 239.2

Dividends paid -137.4 -93

Retained earnings -30 June'19 326 247

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)