During the Current Period, Rosina Limited Paid an Interim Dividend

Multiple Choice

During the current period, Rosina Limited paid an interim dividend of $60 000 to its parent entity, Anastasia Limited. If the tax rate is 30%, what would be the adjustment made in the consolidation entry to record the tax effect of this transaction at the end of the period?

A) DR Deferred Tax Asset $18 000.
B) DR Income Tax Expense $18 000.
C) CR Deferred Tax Liability $18 000.
D) There is no tax effect entry required.