A Ltd Holds a 60% Interest in B Ltd

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.