Sky Limited, a Subsidiary Entity, Sold a Non-Current Asset at a Profit

Multiple Choice

Sky Limited, a subsidiary entity, sold a non-current asset at a profit to its parent entity, Dive Limited. The adjustment necessary on consolidation to reflect the tax effect of this transaction will result in a(n) :

A) increase in deferred tax assets.
B) increase in deferred tax liabilities.
C) increase in income tax expense.
D) decrease in deferred tax assets.