Winter Limited Paid During the Period an Interim Dividend of $5

Multiple Choice

Winter Limited paid during the period an interim dividend of $5 000 to its parent entity. If the tax rate is 30%, what would be the adjustment made in the consolidation entry to record the tax effect of this transaction at the end of the period?

A) No tax effect entry required.
B) Dr Deferred Tax Asset $1 500.
C) Dr Income Tax Expense $1 500.
D) Cr Deferred Tax Liability $1 500.