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During the current period, Rosina Limited paid an interim dividend of $60 000 to its parent entity, Anastasia Limited. If the tax rate is 30%,
During the current period, Rosina Limited paid an interim dividend of $60 000 to its parent entity, Anastasia Limited. If the tax rate is 30%, what would be the adjustment made in the consolidation entry to record the tax effect of this transaction at the end of the period?
- CR Deferred Tax Liability $18 000.
- There is no tax effect entry required.
- DR Income Tax Expense $18 000.
- DR Deferred Tax Asset $18 000.
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