If the Carrying Amount of an Asset of a Subsidiary

question 42

Multiple Choice

If the carrying amount of an asset of a subsidiary in a business combination is increased to fair value,on consolidation the group will record:

• A) a deferred tax liability.
• B) a deferred tax asset.
• C) a gain on bargain purchase.
• D) none of the above.

---

Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, typically vested in leaders and institutions.

Protection

Measures or actions taken to safeguard against harm or damage, often in the context of legal rights, intellectual property, or personal safety.

Identification

The process of recognizing or establishing the identity of a person or thing, often through the analysis of identifying factors or markers.

Goods

Items or merchandise that are tangible, movable, and sold or used in commerce.