This scenario related to question 4 , and 5 . Freedom Limited owns 100% shares of Justice Limited. Intragroup sales were $30,000 in total for the year. Sales from Freedom Limited to Justice Limited, at cost plus 10%, amounted to $16,800, these inventories were sold by Justice Ltd during the current year. The closing inventory of Freedom Limited included goods which cost Freedom Limited $13,200. Freedom Limited purchased this inventory from Justice Limited at cost plus 10%. Tax rate is 30%. Financial information for the two companies for the year ended 30 June 2018 showed the follows: Q4. At consolidation level, there should be a journal entry to record: Select one: A. Cr. Inventory - $1,680 B. Dr. Inventory - $1,200 C. Dr. Inventory $1,680 D. Cr. Inventory - $1,200 At consolidation level, there should be a journal entry to record: Select one: A. Cr. Deferred tax liability - $1,080 B. Dr. Deferred tax asset - $1,080 C. Dr. Deferred tax asset - $360 D. Cr. Deferred tax liability - $360