Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 7. a subsidiary sold inventories to its parent for

7. A subsidiary sold inventories to its parent for $100 000. The inventories originally cost...

70.2K

Verified Solution

Question

Accounting

7. A subsidiary sold inventories to its parent for $100 000. The inventories originally cost the subsidiary $80 000. At balance sheet date, the parent had sold 50% of the inventories to an external party. The company tax rate is 30%. Which of the following is the deferred tax item that is recognised on consolidation?

Select one:

Dr Deferred tax asset $6000

Dr Deferred tax asset $3000

Cr Deferred tax liability $3000

Cr Deferred tax liability $6000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You are seeing a patient whose insulin receptors cannot bind to insulin. Which of the following...

Biology
Q

An approach to a signalized intersection has a saturation flow rate of 1800 veh/h. At the...

Civil Engineering
Q

Correct relation between three coefficients of a B 7 thermal expansion O a B y...

Physics
Q

The period of oscillation vibration magnetometer of a magnet in is 2 sec The period...

Physics
Q

Select the correct answer from each drop down menu 8 8 6 2 4 2...

Geometry
Q

If f x 2x 3 find f x 6 2x 3 4 Find f 1

Calculus
Q

In a standard cost system, an unfavorable overhead volume variance would result if A. Production...

Accounting
Q

Consumption Ratios; Activity Rates Blenestar Company produces two...

Accounting
Q

Una firma de abogados recibi $1880 en efectivo por servicios legales que se prestarn en...

Accounting
Q

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that...

Accounting
Q

Foyert Corp. requires a minimum $6,200 cash balance. Loans taken to meet this requirement cost...

Accounting
Q

9-17. (Weighted average cost of capital) ABBC, Inc. operates a very successful chain of yogurt...

Finance