Arbiter Ltd

Multiple Choice

Arbiter Ltd. holds a 60% interest in Brown Ltd. On July 1, 2012, Brown Ltd. transferred a depreciable non-current asset to Arbiter Ltd. at a profit of $5,000. The remaining useful life of the asset at the date of transfer was 4 years and the tax rate is 30%. The impact of the above on the NCI share of net income for the year ended June 30, 2013 is:

A) An increase of $2,625.
B) A decrease of $2,625.
C) An increase of $1,050.
D) A decrease of $1,050.