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Perry Ltd Owns 25% of Gaga Ltd

Question 13

Multiple Choice

Perry Ltd owns 25% of Gaga Ltd.Gaga's profit after tax for the year ended 30 June 20X4 is $30 000.The tax rate is 30%.During the year ended 30 June 20X4,Perry sold $5000 worth of inventory to Gaga.These items had previously cost Perry $3000.All the items remain unsold by Gaga at 30 June 20X4.Perry's share of Gaga's profit for the year ended 30 June 20X4 is:


A) $5,500
B) $6,250
C) $7,150
D) $7,000

Correct Answer:

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