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Thorpe Ltd Owns 70% of the Issued Share Capital of Perkins

Question 11

Multiple Choice

Thorpe Ltd owns 70% of the issued share capital of Perkins Ltd.Perkins Ltd owns 80% of the issued share capital of Hackett Ltd and 60% of the issued share capital of Klim Ltd.For the year ended 31 December 20X0 each company reported the following profits/(losses) :
$ Thorpe Ltd (800000)  Perkins Ltd (600000)  Hackett Ltd 700000 Klim Ltd 700000\begin{array} { l c } & \$ \\\text { Thorpe Ltd } & ( 800000 ) \\\text { Perkins Ltd } & ( 600000 ) \\\text { Hackett Ltd } & 700000 \\\text { Klim Ltd } & 700000\end{array}
-What is the amount of the total NCI in Klim Ltd's net result for this financial year?


A) $420 000 profit
B) $406 000 profit
C) $490 000 profit
D) $280 000 profit

Correct Answer:

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