Jameson Purchased Goods from Its Subsidiary for $10 000

question 5

Multiple Choice

Jameson purchased goods from its subsidiary for $10 000. The goods cost the subsidiary $6000. The company rate of tax is 30%. Which of the following consolidation adjustment entries is correct?

• A) DR Tax expense $1 200, CR Deferred tax liability $1 200
• B) DR Tax expense $1 200, CR Deferred tax asset $1 200
• C) DR Deferred tax asset $1 200, CR Tax expense $1 200
• D) DR Deferred tax liability $1 200, CR Tax expense $1 200

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Definitions:

Uterine Cycle

The monthly cycle of changes that the uterus undergoes to prepare for pregnancy, including menstrual, proliferative, and secretory phases.

Menarche

The first occurrence of menstruation in a female, marking the onset of reproductive capability, typically occurring in early adolescence.

Vaginismus

A condition characterized by involuntary contraction of vaginal muscles making penetration painful or impossible, often associated with anxiety and fear of vaginal penetration.

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place.