Sky Limited, a subsidiary entity, sold a non-current asset at a profit to its parent entity, Dive Limited. The adjustment necessary on consolidation to reflect the tax effect of this transaction will result in a(n):
A) increase in deferred tax assets.
B) increase in deferred tax liabilities.
C) increase in income tax expense.
D) decrease in deferred tax assets.

Question

Quizplus · Accepted Answer

The Answer is A

Sky Limited, a Subsidiary Entity, Sold a Non-Current Asset at a Profit