During the Year Ended 30 June 20X7, a Parent Entity $\begin{array} { l l l l } \text { Rent revenue } & \mathrm { Dr } & 100,000 & \\\text { Rent expense } & \mathrm { Cr } & & 100,000\end{array}$

Multiple Choice

During the year ended 30 June 20X7, a parent entity rents a warehouse from a subsidiary entity for $100 000. The company tax rate is 30%. The consolidation adjustment entry needed at reporting date is:

A) $\begin{array} { l l l l } \text { Rent revenue } & \mathrm { Dr } & 100,000 & \\\text { Rent expense } & \mathrm { Cr } & & 100,000\end{array}$
B) $\begin{array} { l l l l } \text { Rent revenue } & \mathrm { Dr } & 100,000 & \\\text { Rent expense } & \mathrm { Cr } & & 100,000 \\\text { Income tax expense } & \mathrm { Dr } & 30,000 & \\\text { Deferred tax liability } & \mathrm { Cr } & & 30,000\end{array}$
C) $\begin{array} { l l l l } \text { Rent revenue } & \mathrm { Dr } & 100,000 & \\\text { Rent expense } & \mathrm { Cr } & 100,000 \\\text { Deferred tax asset } & \mathrm { Dr } & 30,000 & \\\text { Income tax expense } & \mathrm { Cr } & 30,000\end{array}$
D) $\begin{array} { l l l l } \text { Rent expense } & \mathrm { Dr } & 100,000 & \\\text { Rent revenue } & \mathrm { Cr } & & 100,000\end{array}$