Question
X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X Ltd also owns 30% of Z Ltd. The ownership interests
X ltd owns 75% of Y Ltd. Y Ltd owns 40% of Z ltd. X Ltd also owns 30% of Z Ltd. The ownership interests in Z ltd were acquired when Z ltd was incorporated. The retained earnings of the three companies at 1 July 2016 and 30 June 2017 are as follows: X Ltd $ Y Ltd $ Z Ltd $ Retained earnings at acquisition date 40 000 12 000 8 000 Retained earnings 1 July 2016 50 000 15 000 10 000 Retained earnings 30 June 2017 60 000 20 000 16 000 The dividends paid/declared by group entities for the year ended 30 June 2017 were as follows: X Ltd $ Y Ltd $ Z Ltd $ Interim dividend paid 3,000 600 500 Final dividend declared 3,000 1,000 1000 Additional Information: During the year ended 30 June 2016, Z sold goods to Y Ltd for $200,000. These goods cost Z Ltd $180,000. 10% of these goods remained in Ys inventory at 30 June 2016. During the year ended 30 June 2016, X sold goods to Z Ltd for $300,000. These goods cost Z Ltd $20,000. 25% of these goods remained in Zs inventory at 30 June 2016. During the year ended 30 June 2017, Z Ltd sold goods to X for $12,000. These goods cost Z Ltd $10,000. 50% of these goods remained in Horn Ltds inventory at 30 June 2017. During the year ended 30 June 2017, Z sold goods to Y Ltd for $200,000. These goods cost Z Ltd $180,000. 15% of these goods remained in Y Ltds inventory at 30 June 2017. All entities in the group use the perpetual inventory system. The corporate tax rate is 30%.
Required: On the basis of the information provided, calculate the total non-controlling interest in consolidated profit after tax and total non-controlling interest in consolidated retained earnings for year ended 31 December 2017. Show all workings.
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