P Ltd acquired inventories for $150,000 which were sold to its subsidiary S Ltd for $120,000 (assume a tax rate of 30%) On consolidation a deferred tax liability would be recorded for:
A) $45,000
B) $36,000
C) $9,000
D) Not recorded
Correct Answer:
Verified
Q4: Consolidation entries never adjust cash because intragroup
Q6: P Ltd sold an item of property
Q6: A Ltd sells inventory to its parent
Q7: Using the same facts as Question 14
Q8: Which of the following accounts cannot be
Q10: Unrealised profits on intra-group sale of inventories
Q12: P Ltd lends $200,000 to its subsidiary
Q13: P Ltd sells inventory to its subsidiary
Q14: Dividends paid by the parent company and
Q14: P Ltd provides management services to its
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents