(2) ①Elimination entry in 2009

　　1)Investment transaction

　　Dr: Capital share 60 000

　　Dr: Capital surplus- opening 4 000

　　Dr: Capital surplus – current year 600

　　Dr: Surplus reserve – opening 1 600

　　Dr: Surplus reserve – current year 800

　　Dr: Unallocated profit– ending 19 600(14 400+8 000-800-2 000)

　　Dr: Goodwill 2 000

　　Cr: Long term equity investment 71 280

　　Cr: Minority interest 17 320[(60 000+4 600+2 400+19 600)*20%]

　　Dr: Investment income 6 400

　　Dr: Minority interest 1 600

　　Dr: Unallocated profit – opening 14 400

　　Cr: Withdrawal of surplus reserve 800

　　Cr: Dividend 2 000

　　Cr: Unallocated profit – ending 19 600

　　2)Internal trading

　　Product A:

　　Dr: Operating revenue 1 000(200*5)

　　Cr: Operating cost 1 000

　　Dr: Operating cost 160[80*(5-3)]

　　Cr: Inventory 160

　　Dr: Deferred tax assets 40

　　Cr: Income tax expense 40

　　3)Internal fixed assets transaction

　　Dr: Operating revenue 200

　　Cr: Operating cost 120

　　Cr: Fixed assets – cost 80

　　Dr: Fixed assets - accumulated depreciation 4(80/10*6/12)

　　Cr: G&A 4

　　②Elimination entry in 2010

　　1)Investment transaction

　　Dr: Capital share 60 000

　　Dr: Capital reserve – opening 4 600

　　Dr: Capital reserve – current 0

　　Dr: Surplus reserve – opening 2 400

　　Dr: Surplus reserve – current year 1 000

　　Dr: Unallocated profit – ending 26 400(19 600+10 000-1 000-2 200)

　　Dr: Goodwill 2 000

　　Cr: Long term equity investment 77 520