Janus Limited, a Subsidiary Entity, Sold During the Current Period

Multiple Choice

Janus Limited, a subsidiary entity, sold during the current period 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.