James Limited Is a Subsidiary of Anastasia Limited

question 19

Multiple Choice

James Limited is a subsidiary of Anastasia Limited. When Anastasia acquired its 75% interest in James, the retained earnings of James were $10 000. At the beginning of the current period James Limited's retained earnings were $40 000. James earned profit after tax of $20 000 during the current period. The total share of the non-controlling interest in the equity of James Limited at the end of the current period is:

• A) $7 500
• B) $10 000
• C) $15 000
• D) $17 500

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Definitions:

Pairs of Earrings

Not an economic key term, but could be referenced in examples relating to consumer goods or inventory.

AVC

Average Variable Cost, the cost per unit of varying the level of output, exclusive of fixed costs.

TVC

Total Variable Costs, which refers to all variable expenses associated with the production of goods or services.

Formula

A mathematical relation or rule expressed in symbols.