A Limited acquired B Limited for $110 000. At acquisition date the fair value of the B Limited's Land asset was $40 000 and the book value was $30 000. If the company tax rate is 30%, which of the following is the appropriate adjustment to recognise the tax effect of the business combination revaluation of land?

Select one:

a.

DR Deferred tax liability $3 000

b.

CR Deferred tax liability $3 000

c.

DR Deferred tax asset $3 000

d.

CR Deferred tax asset $3 000