Janus Limited,a Subsidiary Entity,sold a Non-Current Asset at a Profit

Multiple Choice

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

A) increase in deferred tax assets
B) decrease in deferred tax liabilities
C) increase in retained earnings
D) decrease in retained earnings.