Kenny Ltd Holds a 60% Interest in Swan Ltd

question 8

Multiple Choice

Kenny Ltd holds a 60% interest in Swan Ltd. Kenny Ltd sells inventory to Swan Ltd during the year for $40 000. The inventories originally cost Kenny Ltd $32 000 when purchased from an external party. At the end of the year 50% of the inventories are still on hand. The tax rate is 30%. The NCI adjustment required in relation to this intragroup transaction is a debit to NCI of:

• A) Nil.
• B) $1 120
• C) $2 240
• D) $2 800

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Definitions:

Rh Factor

An antigen found on the surface of red blood cells; presence or absence is significant for blood transfusion compatibility.

Mendelian Pattern

A set of principles related to inheritance that describes how traits are passed from parents to offspring through genes.

Landsteiner

Karl Landsteiner was an Austrian biologist and physician, best known for discovering the ABO blood group system in 1901.

Heterozygous Dihybrid

An individual possessing two different alleles for two traits, resulting from the cross of parents differing in two specific traits.