Paul Ltd Owns 60% of John Ltd and Both Companies

question 6

Multiple Choice

Paul Ltd owns 60% of John Ltd and both companies have a financial year end of 30 April.On 30 April 20X0, Paul Ltd sold a non-current asset to John Ltd for $1 million profit.The remaining useful life at sale date was 10 years.Both entities assume the same total useful life, zero residual amount and use straight-line depreciation.Paul Ltd is currently preparing the financial statements for the year ended 30 April 20X2.Profit for that year (unadjusted for consolidation matters) is Paul $5 million, John $3 million.What is the NCI share of John Ltd's profit for the financial year ended 30 April 20X2?

• A)$1 240 000
• B)$740 000
• C)$800 000
• D)$1 200 000

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Definitions:

Presynaptic Membrane

Axon terminal membrane on the transmitter, or output, side of a synapse.

Neurotransmission

The process by which neurotransmitters are released by a neuron, cross the synaptic gap, and bind to receptors on another neuron, resulting in the transmission of a nerve impulse.

Axosecretory Synapses

Specialized synapses where an axon terminal secretes neurotransmitters directly into the bloodstream.

Transmitters

Chemical agents released by neurons that cross synapses to carry signals to other neurons or muscles.