P Ltd Acquired Inventories for $150 000,which Were Sold to Its

question 15

Multiple Choice

P Ltd acquired inventories for $150 000,which were sold to its subsidiary S Ltd for $120 000 (assume a tax rate of 30%) .On consolidation,a deferred tax liability would be recorded for:

• A) $45 000.
• B) $36 000.
• C) $9000.
• D) not recorded.

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Definitions:

Convey

To communicate or make known a message, idea, or feeling.

Communication Channel

The medium through which information is transmitted from a sender to a receiver.

Digital Means

The use of digital tools, platforms, or technologies to achieve a particular end.

Medium

A means or channel through which something is communicated or expressed.