Homework Answers
The correct answer is option B
The same has been illustrated below
All the intercompany inventory held by parent :-
When intercompany inventory are held by parent the share of unrealised profit will be eliminated in NCI also
NCI share =( 361000 * 10%) - 105000*30%*10% =32950
If All the intercompany inventory held by subsidiary only.
There will be elimination in holding company only and No elimination in the NCI share
NCI share = 361000 *10% =36100
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