Janus Limited, a Subsidiary Entity, Sold During the Current Period

question 16

Multiple Choice

Janus Limited, a subsidiary entity, sold during the current period a non-current asset at a profit to its parent entity. The adjustment necessary on consolidation to reflect the tax effect of this transaction will result in an:

• A) increase in deferred tax assets.
• B) decrease in deferred tax liabilities.
• C) increase in retained earnings.
• D) decrease in retained earnings.

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Definitions:

Utility

In economics, a measure of satisfaction or benefit derived from consuming goods and services.

Learning and Development

A strategic process aimed at enhancing employee skills, knowledge, and competency, contributing to organizational growth.

Business Impact Data

Information that helps in measuring the effect of an activity, process, or decision on the success and profitability of a business.

Cost-effectiveness Evaluation

This evaluation assesses the economic efficiency of different interventions or programs by comparing their costs to their outcomes or effects.