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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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