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.

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Definitions:

Reticular Formation

A complex network of nerve pathways in the central nervous system that plays a key role in controlling arousal and alertness.

Dreaming

A series of thoughts, images, or emotions occurring during sleep.

Pons

A part of the brain located above the medulla and beneath the midbrain, involved in regulating breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.

Head Injury

Physical trauma to the head, which can affect the brain and lead to temporary or permanent damage.