For the Year Ended 31 December 20X1, B Ltd Reported

Multiple Choice

For the year ended 31 December 20X1, B Ltd reported a profit of $1 000 000; and B Ltd's 90-per-cent-owned subsidiary, C Ltd, reported a profit of $500 000.The only intra-group transaction during the year was a sale of inventory from C Ltd to B Ltd at a profit of $100 000.All of this inventory is unsold at 31 December 20X1.What is the formula to correctly calculate the NCI share of C Ltd's profit for this year?

A) $500 000 x 10%
B) $400 000 x 90%
C) $400 000 x 10%
D) $500 000 x 90%