Which of the following is true about intragroup transfer of property, plant and equipment (PPE) as part of consolidation accounting? Group of answer choices We have to add back consequential depreciation as a result of eliminating the gain on disposal of PPE at group level Intragroup transfer of property, plant and equipment at a loss will trigger additional deferred tax asset adjustments at group level We have to eliminate consequential depreciation as a result of eliminating the gain on disposal of PPE at group level Intragroup transfer of property, plant and equipment at a profit will trigger the reduction of deferred tax liabilities at group level

Which of the following is true about intragroup transfer of property, plant and equipment (PPE) as part of consolidation accounting? Group of answer choices We have to add back consequential depreciation as a result of eliminating the gain on disposal of PPE at group level Intragroup transfer of property, plant and equipment at a loss will trigger additional deferred tax asset adjustments at group level We have to eliminate consequential depreciation as a result of eliminating the gain on disposal of PPE at group level Intragroup transfer of property, plant and equipment at a profit will trigger the reduction of deferred tax liabilities at group level

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 9DQ

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