In 2010, Yorkshire Inc

question 62

Multiple Choice

In 2010, Yorkshire Inc., which owns 100% of Blake Company, sold land to Blake Company at $50,000 greater than its cost. The land is still owned by Blake Company. The tax rate is 30%. What is the required consolidated financial statement adjustment in 2013?

• A)Decrease Beginning Retained Earnings: $35,000, decrease Land: $35,000.
• B)Decrease Beginning Retained Earnings: $35,000, decrease Land: $50,000, and increase Deferred Tax Asset: $15,000.
• C)Decrease Beginning Retained Earnings: $50,000, decrease Land: $35,000, and decrease Deferred Tax Asset: $15,000.
• D)Decrease Beginning Retained Earnings: $50,000, decrease Land: $50,000.

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Definitions:

Perception

The process of organizing, interpreting, and giving meaning to sensory information.

Chemo

Short for chemotherapy, a type of cancer treatment that uses one or more anti-cancer drugs as part of a standardized chemotherapy regimen.

Receptor Type

Refers to the specific classification of receptors based on their ligand specificity, function, or location on the cell surface or within the cell.

Taste

A sense that allows organisms to perceive the flavor of substances, primarily using taste buds on the tongue.