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:

1. During the year ended 30 June 2016, Z sold goods to Y Ltd for $200,000. These goods cost Guitar Ltd $180,000. 10% of these goods remained in Y’s inventory at 30 June 2016.
2. During the year ended 30 June 2016, X sold goods to Z Ltd for $300,000. These goods cost Guitar Ltd $20,000. 25% of these goods remained in Z’s inventory at 30 June 2016.
3. 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 Ltd’s inventory at 30 June 2017.
4. 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 Ltd’s inventory at 30 June 2017.
5. All entities in the group use the perpetual inventory system.
6. 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.

Answer rating: 100% (QA)

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