Arnold Ltd Holds a 60% Interest in Burford Ltd

question 47

Multiple Choice

Arnold Ltd holds a 60% interest in Burford Ltd. Burford Ltd sells inventory to Arnold Ltd during the year for $10,000. The inventory originally cost $7,000. At the end of the year, 50% of the inventory is still on hand. The tax rate is 30%. The NCI share of net income adjustment required, in relation to this transaction, is a decrease of:

• A)NIL.
• B)$420.
• C)$630.
• D)$1,050.

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Definitions:

Industrialized Societies

Societies characterized by large-scale industries, advanced technology, and a focus on manufacturing goods for consumption.

Fertility Rates

The average number of children born to a woman over her lifetime in a specific population.

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the number of individuals increases over a specific time period.

American media

The various channels of communication, such as television, radio, newspapers, and the internet, operating in the United States.