If the carrying amount of an identifiable non-current asset of a subsidiary in a business combination is increased to fair value, on consolidation the group will record: a. A current tax liability. b. A deferred tax asset. c. A gain on bargain purchase. d. None of the above.

The answer is b. A deferred tax asset.

Here's the step by step explanation:

1. In a business combination, when the carrying amount of an identifiable non-current asset of a subsidiary is increased to fair value, it means that the asset's value has been revalued upwards.

2. This revaluation creates a temporary difference between the carrying amount of the asset for financial reporting purposes and its tax base (the amount that will be deductible for tax purposes).

3. According to the accounting standards (like IAS 12 Income Taxes), a deferred tax asset or liability should be recognized for all temporary differences.

4. In this case, the carrying amount of the asset is greater than its tax base, which will result in future deductible amounts. Therefore, a deferred tax asset is recognized.

5. So, the correct answer is b. A deferred tax asset.

Note: The other options are not correct because a current tax liability (option a) would not arise from this situation, and a gain on bargain purchase (option c) is related to a different aspect of business combinations. Option d is also incorrect because a deferred tax asset (option b) is recognized.