This scenario related to question 2 , and 3. Freedom Limited owns 100% shares of Justice Limited. On 31 December 2018, Justice Limited sold Freedom Limited office equipment for $5,000. The carrying amount of this furniture is $3,500 (originally cost $6,000 ) when sold. Tax rate is 30%. Q2. At consolidation level, there should be a journal entry to record: Select one: A. Cr. Loss on sale of office equipment - $1,500 B. Dr. Gain on sale of office equipment - $1,500 C. Dr. Loss on sale of office equipment - $1,500 D. Cr. Gain on sale of office equipment - $1,500 At consolidation level, there should be a journal entry to record: Select one: A. Cr. Deferred tax liability - $450 B. Cr. Deferred tax asset - $450 C. Dr. Deferred tax liability - $450 D. Dr. Deferred tax asset - $450