Judith Ltd B)Dr Deferred Tax Liability $\quad$ $\quad$ $\$ 15000$

Multiple Choice

Judith Ltd.took control of Athol Ltd on 1 January 20X5.Athol does not depreciate buildings but Judith group does.The building is shown by Athol at cost at $500 000.The Judith group depreciation rate for buildings is 10% p.a.The tax rate is 30%.
What would be the consolidation data adjustment entry for 31 December 20X5?

A) $\begin{array}{llcc} \text { Dr. Depreciation expense-buildings } &\$5000 \\ \text { Cr. Accumulated depreciation-buildings} &&\$5000\\ \text { Dr. Deferred tax asset } &\$1500\\ \text {Cr. Deferred tax revenue } &&\$1500\\\end{array}$

B) Dr. Deferred tax liability $\quad$ $\quad$$\$ 15000$
Cr. Deferred tax expense $\quad$ $\quad$$\quad$ $\quad$ $\quad$ $\quad$ $\$ 15000$


C) $\begin{array}{llcc} \text { Dr. Depreciation expense-buildings } &\$5000 \\ \text { Cr. Accumulated depreciation-buildings} &&\$5000\\ \text { Dr. Deferred tax revenue } &\$1500\\ \text {Cr. Deferred tax liability } &&\$1500\\\end{array}$



D) No entry required