Ryan Ltd Holds a 75% Interest in Tully Ltd

Multiple Choice

Ryan Ltd holds a 75% interest in Tully Ltd. On 1 July 2021, Tully Ltd transferred a depreciable non-current asset to Ryan Ltd at a profit of $15 000. The remaining useful life of the asset at the date of transfer was 5 years and the tax rate is 30%. The impact of the above transaction on the NCI for the year ended 30 June 2023 is:

A) an increase of $1 050.
B) a decrease of $1 050.
C) an increase of $1 500.
D) a decrease of $1 500.