Snow Co acquired 100 per cent of the equity shares of Flake Co in 20x7. At the acquisition date the carrying amount of net assets in Snow Co's financial statements included a deferred tax liability of $75 500. At the acquisition date, fair value adjustments were made to increase the carrying amount of Flake's plant and equipment by $70 000 and decrease the carrying amount of a warranty provision by $20 000. Warranty costs are given tax relief when paid. Assuming that the tax rate is 20 per cent, what is the adjusted deferred tax liability of Flake Co at the acquisition date for consolidation purposes? A $57 500 B $65 500 $85 500 D $93 500 CU