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Dion Ltd Acquired a 60% Ownership Interest in Sean Ltd

question 19

Multiple Choice

Dion Ltd acquired a 60% ownership interest in Sean Ltd on 30 June 2021. On the same day, Sean Ltd acquired a 70% ownership interest in Jayden Ltd. The following inter-entity transactions have taken place between the entities in the group during the years ended 30 June 2022 and 30 June 2023.
i. On 1 July 2021 Sean sold an item of plant to Jayden for a profit of $40 000. The remaining useful life of the plant at the date of transfer was 4 years.
ii. On 1 September 2021, Jayden paid a dividend of $50 000 from profits earned since 30 June 2021.
iii. Dion lent $60 000 to Sean on 1 January 2022. Interest charged on the loan for the year ended 30 June 2022 was $4000 and for the year ended 30 June 2023 was $8000.
iv. On 31 May 2022 Dion sold inventories to Jayden for $30 000. Profit earned on the sale was $4000. Jayden sold the inventories to external parties on 1 August 2022.
Details of profits earned by entities within the group for the years ended 30 June 2022 and 30 June 2023 are:
$\begin{array}{|l|r|r|}\hline & \text { 30 June 2022 } & \text { 30 June 2023 } \\\hline \text { Dion } & 200000 & 250000 \\\hline \text { Sean } & 170000 & 140000 \\\hline \text { Jayden } & 40000 & 70000 \\\hline\end{array}$ The tax rate is 30%.
The effect of the interest paid by Sean to Jayden on the NCI of Sean for the year ended 30 June 2023 is:

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