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	40 000	Accounts payable	80 000
Accounts Receivable	20 000	Wages Payable	4 000
Allow. Doubtful Debts	(1 000)	Provision for annual leave	1 000
Inventory	100 000	Unearned revenue	2 000
Prepaid Insurance	10 000
Interest Receivable	5 000
Plant	300 000
Accum. Depreciation	(30 000)

Additional information:

• The plant was acquired on 1 July 2020. Depreciation for accounting purposes was 10% (straight-line method), while 15% (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 liability the company will record on 30 June 2021:

Select one:

a.

$9 000

b.

$4 500

c.

$4 800

d.

$9 300