Parent acquired subsidiary in 2018 with 80% interest at RM32,000. The accounting policy is to measure non-controlling

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Question:

Parent acquired subsidiary in 2018 with 80% interest at RM32,000. The accounting policy is to measure non-controlling interest at a proportionate share of the net identifiable assets. During the year, the intragroup sales (subsidiary sold to parent) were RM40,000 and remained in the parent’s ending inventories of RM5,000 (The year 2020) & RM6,000 ( year 2019-prior). The profit margin was 20% on selling prices. Profit for the subsidiary is RM17,000 (the year 2020). Subsidiary: Pre-acquisition retained earnings:RM10,000, retained earnings opening 2020: RM15,000, share capital RM30,000.

REQUIRED Prepare the journal entries

a) Without tax effects

b) With tax effects (24%)