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Realtek plc own 80% of the ordinary shares of Lotek Ltd. and 3/4^rd of its preference shares. At the 31^th of December 2016 the profit and loss account of the two companies were as follows:

	Realtek Ltd.		Lotek Ltd.
	$000	$000	$000	$000
Turnover	-	5,000	-	3,750
Cost of Sales	-	3,420	-	2,625
Gross Profit	-	1,580	-	1,125
Distribution costs	180	-	90	-
Administration expenses	420	600	180	270
Profit on ordinary activities before taxation	-	980	-	855
Taxation on profit on ordinary activities	-	335	-	250
Profit on ordinary activities after taxation	-	645	-	605
Minority Interest	-	-	-	-
	-	-	-	-
Extraordinary profits net of tax	-	120	-	100
Profit for the financial year	-	765	-	705
Retained profits from the previous year	-	580	-	400
	-	1,345	-	1,105
Proposed dividend	-	-	-	-
Preference	-	-	210	-
Ordinary	600	-	600	-
Transfer to reserve	400	1,000	160	970
Retained profit carried to next year		345		135

Note:

Realtek Ltd. sold goods for $70,000 to Lotek Ltd. on 12 May 2016, Lotek Ltd. had not paid for these goods, all of which were still in stock. Realtek Ltd. sells to Lotek Ltd, at a mark-up of 25%.

Required

1. A consolidated profit and loss for Realtek Ltd. and its subsidiary for the year 31 December 2016 (22 marks).
2. Provide notes to the statement showing total minority interest (3 marks)

(Total: 25 marks).

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