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Available information: Carrying amount of assets was $60,000 . All assets were realised for $50,000 Liquidation cost was $3,000 What is the main purpose of the liquidation account and what is the outcome of the liquidation accounting based on the information above: to calculate the surplus or deficiency on liquidation; Surplus on liquidation of $13,000. to show the capital amount due to contributories; Surplus on liquidation of $47,000. to calculate the deficiency or surplus on liquidation; Loss on liquidation of $13,000. to show the final cash payment to each class of contributory; Gain on liquidation of $13,000. ensions/adjustments-extensions-and-special-consideration.php Question 5 0.5 pts Hitz Limited, a subsidiary entity, sold a non-current asset at a loss to its parent entity, Tonight Limited in prior year. The adjustment necessary on consolidation to reflect the tax effect of this transaction will result in: an increase in deferred tax liabilities an increase in deferred tax assets an increase in a loss on disposal of the non-current asset an decrement to non-controlling interest balances Previous Next > Question 6 0.5 pts Bobs Ltd sold an item of plant to its subsidiary Mobs Ltd on 1 January 2021 for $45 000. The asset had cost Bobs Ltd $80 000 when acquired on 1 January 2019. At that time, the remaining useful life of the plant was assessed at 5 years. The adjustment necessary on consolidation to reflect the tax effects of the consequential depreciation adjustment for the year ended 30 June 2021 will result in: o an increase in income tax expense and a decrease in deferred tax liabilities a decrease in deferred tax liabilities and a decrease in income tax expense an increase in income tax expense and a decrease in deferred tax assets o a decrease in deferred tax assets and a decrease in income tax expense