A Ltd Holds a 60% Interest in B Ltd

question 44

Multiple Choice

A Ltd holds a 60% interest in B Ltd. A Ltd sells inventory to B Ltd during the year for $10 000. The inventories originally cost $7 000 when purchased from an external party. 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 intragroup transaction is a debit to NCI of:

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

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Definitions:

Dependent

A term used to describe someone who relies on others for support, often financial or for personal care.

Fragile X Syndrome

A genetic condition causing intellectual disability, behavioral and learning challenges, and various physical characteristics.

Chromosomal Defect

An abnormal condition or mutation affecting the chromosomes, leading to physical and/or mental developmental issues.

Down Syndrome

A genetic disorder caused by the presence of an extra chromosome 21, characterized by physical and intellectual developmental delays.