Refer to Question 36 Assume the corporate tax rate is 30 The consolidation

Refer to question 36 assume the corporate tax rate is

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11)Refer to Question 36. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 will include the following deferred tax adjustment: a)Dr. Income tax expense $ 24,000 Cr. Deferred tax liability $ 24,000 b)Dr. Income tax expense $120,000 Cr. Deferred tax liability $120,000 c)Dr. Deferred tax asset $ 24,000 Cr. Income tax expense $ 24,000 d)Dr. Deferred tax asset $120,000 Cr. Income tax expense $120,000 e)No entries for this are required for 30/6/09 12)The Subsidiarymakes a sale of inventory to the Parent. The transfer price is $450,000. The mark up on cost used by the Subsidiary is 50%. The Parent has 80% of the inventory still on hand. The unrealised profit in closing inventory amounts to: 13)The Subsidiarymakes a sale of inventory to the Parentfor $300,000 during the year to 30 June 2008. The original cost of the inventory to the Subsidiary is $200,000. There is 60% of this inventory on hand with the Parent at the beginning of the year to 30 June 2009. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 include:
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Page 5 of 12 14)The Parenttransfers land to the Subsidiaryfor proceeds of $150,000 on 1 May 2009. The original cost of the land to the Parent is $80,000. The land remains on hand at 30 June 2009. The consolidation worksheet entries for 30/6/09 include: 15)Refer to Question 40. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 will include the following deferred tax adjustment: a)Dr. Deferred tax asset $ 21,000 Cr. Income tax expense $ 21,000 b)Dr. Deferred tax asset $ 21,000 Cr. Retained profits 1/7/08 $ 21,000 c)Dr. Deferred tax liability $ 21,000 Cr. Income tax expense $ 21,000 d)Dr. Deferred tax liability $ 21,000 Cr. Retained profits 1//7/08 $ 21,000 e)No entries for this are required for 30/6/09
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Page 6 of 12 16)The Parenttransfers land to the Subsidiaryfor proceeds of $250,000 on 1 February 2007. The original cost of the land to the Parent is $150,000. The Subsidiary sells the land to an external party for $480,000 on 30 June 2009. Assume the corporate tax rate is 30%. The consolidation worksheet entries for 30/6/09 include:
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  • Accounting, Balance Sheet, Generally Accepted Accounting Principles, Cr., Dr. Retained profits

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