Credit $000 Consolidated Entity $000 4,970 40 450 591 3,114 674 ? ? e e 15 13 20 407 160 448 ? 317.5 9 Consolidation worksheet for financial year ended 30 June 2020 Leafy Green Adjustments Ltd Ltd Debit Ref $000 $000 $000 Sales revenue 3,450 1,970 450 f Less cost of goods sold Opening inventories 375 256 Add purchases 2,060 1,504 f Less closing inventories 425 279 30 9 Cost of goods sold 2,010 1,481 Gross profit 1,440 489 Dividend revenue 70 70 Management fee revenue 20 20 d Interest revenue 13 13 Depreciation expense 225 197 1 Finance costs 125 48 Other expenses 325 119 24 cld Profit before tax 855 138 Tax expense 265 45 16.5 ig Profit after tax for the year 590 93 Retained earnings 1 July 2019 824 343 222 b/i Dividends paid (50) (25) Dividends declared (110) (45) Retained earnings 30 June 2020 1,254 366 Issued capital 750 400 400 b Revaluation surplus 190 Fair value adjustment 56 b/a Shareholders' equity 2,194 766 Assets Cash 190 170 Accounts receivable 173 109 h Dividends receivable 45 k Inventories 425 279 9 Investment in Green Ltd 670 0 b Loan to Leafy Ltd 200 Land 1,199 450 80 Buildings 1,340 968 Accumulated depreciation (475) (525) Plant and equipment 1025 690 10 1 Accumulated depreciation (275) (290) 45 1 Goodwill (net) 89 b/c Deferred tax asset 35 25 27 gil 48 25 45 993 (50) (110) 1,439.50 750 190 56 2,379.50 360 45 237 45 30 674 670 200 e a 1,729 2,308 (1,000) 1,725 70 24 13.5 (590) 65 73.5 4,352 2,076 5,581.50 111 292 110 87 50 45 45 45 h k 198 297 110 Total assets Less liabilities Current taxes payable Accounts payable Dividend payable Loan from Green Ltd Mortgage loan Deferred tax liabilities Net assets 200 e 200 1,355 1,100 2,455 a 90 2,194 28 766 24 1,842.50 142 2,379.50 1,842.50 What does the $24 credit (Cr) consolidation adjustment to 'Deferred tax liabilities' most likely represent? a. Consolidation adjustment to recognise the tax effects of the fair value increment on the land at the date of acquisition. O b. Consolidation adjustment to recognise the tax effects of the elimination of an unrealised profit on sale of intragroup land. O c. Recognise the carrying amount of the asset is lower than the tax base of the asset creating a deductible temporary difference. O d.Consolidation adjustment to recognise the tax effects of the consolidated carrying amount value of the land being less than the sum of the parent and the subsidiary land