A Ltd Holds a 60% Interest in B Ltd

question 22

Multiple Choice

A Ltd holds a 60% interest in B Ltd. B Ltd sells inventories to A Ltd during the year for $10 000. The inventories originally cost $7 000. 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 transaction is a debit to NCI of:

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

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Definitions:

Improperly Labelled

A situation where a product's packaging or labeling does not accurately describe its contents or fails to meet regulatory standards.

Liable

Legally responsible for an action or a debt.

Statutory Warranties

Express warranties on goods provided by statute.

Repair Facilities

Places or workshops equipped to fix, maintain, and restore vehicles, machinery, or other equipment back to working condition.