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ABC Limited, a subsidiary entity, sold a non-current asset at a profit to its parent entity during the current period. The adjustment necessary on consolidation

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

Select one:

a.

decrease in retained earnings.

b.

increase in deferred tax assets.

c.

decrease in deferred tax liabilities.

d.

increase in retained earnings.

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