On 30 June 2021 George Ltd recorded a gain on revaluation for equipment of $35,000....
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Accounting
On 30 June 2021 George Ltd recorded a gain on revaluation for equipment of $35,000. In the previous year a loss on revaluation for equipment of $20,000 had been recorded. That tax rate is 30%. On 30 June 2021 the journal entry required for a tax effect is: Select one:
a. Dr Income tax expense (OCI) $10,500, Cr Deferred tax liability $10,500
b. Dr Income tax expense (OCI) $4,500, Cr Deferred tax liability $4,500
c. Dr Income tax expense (OCI) $6,000, Cr Deferred tax liability $6,000
d. Dr Deferred tax liability $10,500, Cr Income tax expense (OCI) $10,500
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