Arbiter Ltd

question 44

Multiple Choice

Arbiter Ltd. holds a 60% interest in Brown Ltd. On July 1, 2012, Brown Ltd. transferred a depreciable non-current asset to Arbiter Ltd. at a profit of $5,000. The remaining useful life of the asset at the date of transfer was 4 years and the tax rate is 30%. The impact of the above on the NCI share of net income for the year ended June 30, 2013 is:

• A)An increase of $2,625.
• B)A decrease of $2,625.
• C)An increase of $1,050.
• D)A decrease of $1,050.

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Definitions:

Global Expansion Strategy

A plan implemented by businesses to increase their presence in various international markets.

Subsidiary

A company that is owned or controlled by another company, often referred to as the parent company.

Industry Expertise

Specialized knowledge and skills in a specific industry, gained through experience and study.

Corporate Level Operations

Strategic activities and decisions made at the highest level of an organization, affecting its overall direction and goals.