During the Year Ended 30 June 2022, Jasmine Ltd Rents

question 16

Multiple Choice

During the year ended 30 June 2022, Jasmine Ltd rents a warehouse from its subsidiary, Rose Ltd, for $20 000. The company tax rate is 30%. The consolidation adjustment entry needed at 30 June 2022 is:

• A) \[\begin{array} { c l c c }
• \text { Rent reverule } & \mathrm { Dr } & 20000 & \\
• \text { Rent expense } & \mathrm { Cr } & & 20000 \\
• \text { Income tax expense } & \mathrm { Dr } & 6000 & \\
• \text { Deferted tax liability } & \mathrm { Cr } & & 6000
• \end{array}\]
• B) \[\begin{array} { c l c c }
• \text { Rent reverule } & \mathrm { Dr } & 20000 & \\
• \text { Rent expense } & \mathrm { Cr } & & 20000 \\
• \text { Deferred tax asset } & \mathrm { Dr } & 6000 & \\
• \text { Income tax expense } & \mathrm { Cr } & & 6000
• \end{array}\]
• C) Rent Teverume\(\quad\)Dr\(\quad\)\(\quad\)20000
• Rent experse\(\quad\)\(\quad\)Cr\(\quad\)\(\quad\)20000
• D) Rent expense\(\quad\)Dr\(\quad\)\(\quad\)20000
• Rent revenue\(\quad\)\(\quad\)Cr\(\quad\)\(\quad\)20000

---

Definitions:

Company Grapevine

The informal and unofficial communication network within an organization.

Interpersonal Communications

Direct, face-to-face communication between two or more individuals, focusing on the exchange of information and feelings.

Formal Source

An officially recognized or authoritative origin of information, such as academic publications or government documents.

Positive Relationships

Connections between individuals or groups that are characterized by mutual respect, cooperation, and positive communication.