On 1 July 2021, Xavier Ltd Rents a Warehouse for One

On 1 July 2021, Xavier Ltd rents a warehouse for one year from its subsidiary, Gabrielle Ltd, for $60 000. The company tax rate is 30%. The consolidation adjustment entry needed at 30 June 2023 is:

A) $$\begin{array} { c l c c } \text { Profit ard loss surninary } & \text { DR } & 60000 & \\\text { Retained earnings } & \text { CR } & & 60000 \\\text { Income tax expense } & \text { DR } & 18000 & \\\text { Deferted tax liability } & \text { CR } & & 18000\end{array}$$
B) $$\begin{array} { c l c c } \text { Profit ard loss surrinary } & \text { DR } & 60000 & \\\text { Retained earnings } & \text { CR } & & 60000 \\\text { Deferred tax asset } & \text { DR } & 18000 & \\\text { Income tax expense } & \text { CR } & & 18000\end{array}$$
C) Profit and loss surrimary $\quad$$\mathrm { DR }$$\quad$ 60000
Retained earmings $\quad$$\mathrm { CR }$$\quad$ 60000
D) No entry is required at 30 June 2023.