What is the value of the deferred tax asset

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Reference no: EM133497127

Question: AA owns 55% of BB, but had control. You were provided with the following information for intercompany transactions between AA and BB during 2022.

On December 31, 2021 there was some inventory in the warehouses of AA that was purchased from BB. The gross profit earned on this sale on this remaining inventory was $18,000 (before tax). All this inventory was sold was sold to outside parties in 2022.
On January 1, 2022, AA purchased inventory from BB. The value of this inventory on the books of BB prior to the sale was $30,000. The gross markup (profit) earned by BB was 15%. Forty percent of this inventory remained in the warehouses of AA at the end of 2022, with the remaining sold to outside parties during 2022
On June 30, 2022 AA sold inventory to BB. The Gross profit before tax on this sale was $15,000. At the end of 2022, 45% of this inventory was still in the warehouses of BB.
Also on June 30, 2022 BB sold land to AA. This historical cost of this land on the books of BB was $110,000. The gross profit before tax on this sale was 20%. All of this land was sold to outsiders during by the end of 2022.
On July 1, 2022 AA sold land to BB. The gross profit earned before tax was $12,000. None of this land was sold this land to an outside party.
AA had acquired BB on January 1, 2021. For it's 55% ownership AA paid $53,000. On the date of acquisition, all of BB's assets fair value and book value were equal, and there was no goodwill. - so you need to calculate the opening balance of the non-controlling interest
The opening balance of the consolidated Deferred Tax Asset on January 1, 2022 was $33,000.

What is the value of the Deferred Tax Asset that would that would appear on the consolidated Balance Sheet at December 31, 2022? Assume a 30% tax rate.

Reference no: EM133497127

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