Which is deferred tax item that recognized on consolidation


Problem

A subsidiary sold inventories to its parent for $100 000. The inventories originally cost the subsidiary $76 000. At balance sheet date, the parent had sold 50% of the inventories to an external party. The company tax rate is 30%. Which is the deferred tax item that is recognized on consolidation?

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Financial Accounting: Which is deferred tax item that recognized on consolidation
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