When calculating the NCI share of equity the step approach is used. Demonstrate the step approach, explaining in detail each journal entry, using the following information:

Time Ltd acquired 90% of Out Ltd for $252,000 cash on 1 July 2018. At that date the equity of Out included the following:

Share Capital $200 000

Retained Earnings 80 000

280 000

On 30 June 2020, Out Ltd provided the following information:

Profit after tax $ 40 000

Retained earnings (1/7/19) 100 000

Dividend paid 10 000