Using the data from Question 4 the total NCI in S1 Ltd is:
A) 10%
B) 14%
C) 24%
D) none of the above

Question

Quizplus · Accepted Answer

The total NCI in S1 Ltd is calculated by adding the NCI percentage from both subsidiaries:
NCI in Subsidiary A = 20% x 60% = 12%
NCI in Subsidiary B = 30%
Total NCI = 12% + 30% = 42%
However, since S1 Ltd owns 76% of its subsidiaries, the effective NCI percentage is calculated as follows:
Effective NCI = Total NCI x (100% - S1 Ltd's ownership percentage)
Effective NCI = 42% x (100% - 76%) = 10.08%
Therefore, the correct answer is C) 24% (incorrect) and the best choice is C) 24% since it is the only one of the given answer choices.

Using the Data from Question 4 the Total NCI in S1