Question: During the current fiscal year, A Ltd sold a batch of inventories with original cost of $100,000 to its subsidiary B Lto for $120,000. All

During the current fiscal year, A Ltd sold a batch of inventories with original cost of $100,000 to its subsidiary B Lto for $120,000. All of these inventories were sold to external parties by the fiscal year end. A senior financial accountant records the following consolidation worksheet journal entries to eliminate the effect of the intragroup transaction aboveDr. Sales revenue$100,000Cr. Cost of good sold $100,000The accountant is questioned why she did not consider the income tax effects associated with the adjustment. Can you help her explain in one or two sentence(s)?

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