If an Entity Sells a Non-Current Asset at a Profit

question 50

Multiple Choice

If an entity sells a non-current asset at a profit to another entity within the same group, which of the following consolidation adjustments is necessary to reflect the tax effect?

• A) Dr Deferred tax asset
• B) Dr Deferred tax liability
• C) Dr Tax expense
• D) Cr Deferred tax asset

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Definitions:

Fiber-Optic Networks

Telecommunications infrastructure that uses glass or plastic fibers to transmit data at high speeds using light signals.

DSL

Digital Subscriber Line, a technology for bringing high-bandwidth information to homes and businesses over ordinary copper telephone lines.

Cable

in finance, refers to the GBP/USD exchange rate in forex trading; in telecommunications, it refers to insulated wire or wires having a protective casing used for transmission of electricity or telecommunication signals.

Electronic Platform

A digital framework or environment that enables various types of online interactions or transactions between users or entities.