A Consolidation Worksheet Adjustment to Eliminate the Effect of Interest

question 20

Multiple Choice

A consolidation worksheet adjustment to eliminate the effect of interest revenue and interest expense relating to intragroup loans has which of the following tax effects?

• A) No tax effect
• B) Increase in current tax liability
• C) Increase in deferred tax liability
• D) Decrease in deferred tax asset

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Definitions:

Specific Tasks

Distinct, individual activities designed to achieve a particular outcome or objective.

Action Steps

Specific, measurable actions that are planned to achieve a desired outcome or goal.

Achieve Goals

The process of successfully meeting an objective or completing a task.

Reliability

The consistency of a measure or instrument in yielding the same result under the same conditions over time.