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A Ltd acquired all issued shares of B Ltd on 1 July 2020. On the same date, B Ltd had a contingent liability disclosed in

A Ltd acquired all issued shares of B Ltd on 1 July 2020. On the same date, B Ltd had a contingent liability disclosed in the notes to its individual financial statement. The consolidation worksheet entries on 1 July 2020 in relation to this contingent liability will record:

a. a reduction in goodwill

b. a deferred tax asset

c. no record should be made

d. a deferred tax liability

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