You are preparing the consolidated financial statement for the X Company and its 80 owned subsidiary Y Ltd, for the year ended July 31 st 2019 Which of the following transactions would give rise to a deferred income tax asset being recorded on the consolidated balance sheet X sells inventory to Y at a markup of 30 , and Y resells all of this inventory prior to the year end X sells inventory to Y at a markup of 30 ,and Y resells 60 of the inventory prior to the year end Y sells inventory that it had acquired from X in the previous year to an unrelated party at a markup of 30 Y sells inventory that it had acquired from X in the previous year to an unrelated party at $1,000

The Answer is in the image, click to view ...

Question: You are preparing the consolidated financial statement for the X Company and its 80% owned subsidiary Y Ltd, for the year ended July 31 st

You are preparing the consolidated financial statement for the X Company and its 80% owned subsidiary Y Ltd, for the year ended July 31^st.2019.Which of the following transactions would give rise to a deferred income tax asset being recorded on the consolidated balance sheet?

X sells inventory to Y at a markup of 30%, and Y resells all of this inventory prior to the year-end.
X sells inventory to Y at a markup of 30%,and Y resells 60% of the inventory prior to the year end.
Y sells inventory that it had acquired from X in the previous year to an unrelated party at a markup of 30%
Y sells inventory that it had acquired from X in the previous year to an unrelated party at $1,000.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Imagine you are the clinical manager of an outpatient health care unit interested in investigating patient perspectives on the quality of services received. Develop a research question based on the...

On April 1 st .2019, X bought 75% of Y Company for $500,000. On that date Y had net assets with a book value of $600,000 and with the exception of a Trademark which fair value was $40,000 higher than...

You are preparing the consolidated financial statement for the X Company and its 80% owned subsidiary Y Ltd, for the year ended July 31 st .2019. Which of the following transactions would give rise...

Answer all the questions below with explanations and long answers using the pdf. 1) Net Income before Income Tax (do not consider comprehensive income) 2) Total of Depreciation Expense (including...

kindly show me all workings . Thanks Multiple-choice questions Select the best answer from the alternatives given and circle the letter of your choice. 1. On November 30, Pindar Co. purchased for...

Please answer 1 2 and 3 CHAPTER 8 1. What types of property, plant, and equipment (PP&E) does the company own? Has the investment in PP&E increased or decreased during the period? 2. How much...

(30 Marks): Parent Company bought 80% of the outstanding common shares of the Subsidiary Company on December 31, year 5 at the cost of $130,000. At that date, the Subsidiary had 10,000 common shares...

Hello, Please could you help me with this question and also with my homework? Thanks in advance. The first question is below and the homework is attached (uploaded). Warble Inc. extended a one-year...

Perform a financial assessment of the company from the annual report. You should refer to the movement of the annual reports' financial performance section. A financial assessment will include ratio...

On January 1, 2019, Petrol Co. Acquired 80% interest in Shell Inc, by issuing 5,000 shares with the fair value of P60 per share and par value of P40 per share. The financial statements of Petrol Co....

If the joint probability density of X and Y is given by Find (a) The marginal density of X; (b) The conditional density of Y given X = 1/4. (2r y for1,0

please complete both of these tables TABLE 1. Pulley's Moment of Inertia, I (T) = 0.200m, h= 1m m (kg) (t) (s) (a) h 2(t) (m/s) (a) = (a)/(r) (rad/s) Tappl= m x (9.8-(a)) x (r) (Nm) 0.250 m (kg) t(s)...

You Must create and upload a PDF document. If you upload a Wort, Word Perlect, or other format, there is no guarantee that your flie will be able to be opened and graded. Purpose of the Assignment...

Matthias Corp. had the following foreign currency transactions during 2017: Purchased merchandise from a foreign supplier on January 20 for the U.S. dollar equivalent of $60,000 and paid the invoice...

Hosmer Company completed 312,000 units during the year at a cost of $7,800,000. The beginning finished goods inventory was 22,000 units at $440,000. Determine the cost of goods sold for 325,000...

On July 1, 2017, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2018. The note is denominated in euros. The U.S. dollar equivalent...

Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2017, Brief correctly included this receivable for 200,000 local currency units...

The accountant for Snappy photographic Supply Ltd has estimated the following activity cost pools and activity drivers for the coming year: An order for 1000 boxes of film development chemicals has...

Explain why every Starbucks doesn't have administrative staff in the backroom and if there are disadvantages to their design

Annoyance about a statement that has been made by somebody

6. Develop a circular model, with positive and negative feedback loops, showing the relationships between the following critical variables:

Self-confidence