A company commenced business on 1 July 2020. On 30 June 2021, an extract of the statement of financial position prepared for internal purposes, but excluding the effect of income tax, disclosed the following information:

Assets	$	Liabilities	$
Cash	400 000	Accounts payable	800 000
Accounts Receivable	200 000	Wages Payable	40 000
Allow. Doubtful Debts	(10 000)	Provision for annual leave	10 000
Inventory	1 000 000	Unearned revenue	20 000
Prepaid Insurance	100 000
Interest Receivable	50 000
Plant	3 000 000
Accum. Depreciation	(300 000)

Additional information:

• The plant was acquired on 1 July 2020. Depreciation for accounting purposes was 10% (straight-line method), while 20% (straight-line) was used for tax purposes.
• The tax rate is 30%.

Tip: You might like to complete a deferred tax worksheet when completing this question

Determine the deferred tax asset the company will record on 30 June 2021:

Select one:

a.

$15 000

b.

$21 000

c.

$24 000

d.

$18 000