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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Germ cell proliferation through mitosis: in males, this occurs _______________________ and in females, this occurs ________________________.throughout life,...

Medical Sciences
Q

MATLAB CODE: Making cubic spline iterpolation function. Then, To solve use Tridiagonal matrix algorithm(TDMA) xi -0.5 -0.4 -0.2 0 0.2 0.4 0.6 0.8 yi 0.04 0.1 0.4 1 0.35 0.2 0.3 0.04

Mechanical Engineering
Q

A child's play rifle uses a spring to fire a 5.21-g soft plastic ball. The spring...

Physics
Q

What type of selection occurs when individuals with traits at either extreme have higher fitness...

Biology
Q

esson Posttest Question 10 If a particle moves with a uniform velocity v on a...

Biology
Q

Use technology and a t test to test the claim about the population mean at...

Statistics
Q

Complete parts a through h for the data below 2 1 2 4 3 4...

Statistics
Q

5 Kristen s financial advisor has given her a list of 11 potential investments and...

Algebra
Q

Exhibit 2.2 PART 2 Budgeting and Variance Analysis Using Only a Single...

Accounting
Q

Miller Company's contribution format income statement for the most recent month is shown below: Required:...

Accounting
Q

NPV and IRR A project that costs $1,329,530.24 to install will provide annual cash flows...

Finance
Q

One of your new employees notes that your cost of debt has a lower cost...

Finance