Multiple Choice
P Ltd acquired inventories for $150,000 which were sold to its subsidiary S Ltd for $120,000 (assume a tax rate of 30%) On consolidation a deferred tax liability would be recorded for:
A) $45,000
B) $36,000
C) $9,000
D) Not recorded
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q18: Tax effect adjustments only apply to consolidation
Q19: Unrealised profits on intra-group sale of inventories
Q20: Unrealised gains and losses on intra-group sales
Q21: Unrealised gains on the intragroup sale of
Q24: The useful life of a depreciable asset
Q25: Using the same data as for question
Q27: Where service fees are accrued by group
Q28: An impairment loss will be recognised in
Q30: Deferred tax assets and liabilities arising from
Q36: Where a parent entity sells inventories to