Fish Ltd acquired all the shares in Molee Ltd on 1 July 2016. All the net assets of Molee Ltd was at fair value at the date of acquisition except for an equipment, which has a carrying amount of $220,000 (COST is $280,000) in the books of Molee Ltd. At the date of acquisition, the fair value of the equipment is $265,000 and the remaining useful life of the equipment is 4.5 years.

The consolidation adjusting entry to record the tax effect on the depreciation expense at 30 June 2021 includes:

		Cr Income tax expense $1,500
		Dr Deferred tax asset $12,000
		Dr Deferred tax asset $3,000
		Cr Income tax expense $3,000