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On 1 July 2021, C Ltd purchased 90% of the share capital of...

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Accounting

On 1 July 2021, C Ltd purchased 90% of the share capital of D Ltd for $150000. At that date, shareholders equity of D Ltd was:
$
Share capital 90000
General reserve 30000
Retained earnings 10000
The abridged statement of comprehensive income of both companies for the year ended 30 June 2023 were as follows:
C Ltd D Ltd
$ $
Retained earnings 1 July 20221400010000
Operating profit 1800016000
3200026000
Interim dividend paid 140008000
Proposed dividend 70004500
2100012500
Retained earnings 30 June 20231100013500
Additional information
a) The closing inventory of C Ltd included goods of $5000 bought from D Ltd. This inventory originally cost D Ltd $4000.
b) C Ltd included in its final accounts the dividends provided by D Ltd.
c) All dividends are from post-acquisition profit.
d) The directors have applied the impairment test for goodwill and determined that a write-down of $3300 is required for consolidation purposes as at 30 June 2023.
e) The company tax rate is 30%.
Required:
Prepare an acquisition analysis assuming the full goodwill method.
Calculate the NCI.

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