Jameson Purchased Goods from Its Subsidiary for €10 000

question 3

Multiple Choice

Jameson purchased goods from its subsidiary for €10 000. The goods cost the subsidiary €6000. At reporting date, Jameson still held all of the goods. The company rate of tax is 30%. Which of the following consolidation adjustment entries is correct?

• A) DR Income tax expense €1 200, CR Deferred tax liability €1 200
• B) DR Income tax expense €1 200, CR Deferred tax asset €1 200
• C) DR Deferred tax asset €1 200, CR Income tax expense €1 200
• D) DR Deferred tax liability €1 200, CR Income tax expense €1 200.

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Definitions:

Dissociative Identity Disorder

Dissociative identity disorder is a psychological condition characterized by the presence of two or more distinct personality states or identities within a single individual.

Neurodevelopmental Disorder

A disorder that affects the development of the nervous system, leading to impaired brain function and behavior.

Obsessive-Compulsive Disorder

A mental disorder where people feel the need to check things repeatedly, perform certain routines repeatedly, or have certain thoughts repeatedly.

Impulsively

Acting without forethought or consideration of the consequences.