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 $235,000 (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:

Dr Deferred tax asset $8,000

Cr Income tax expense $1,000

Dr Deferred tax asset $2,000

Cr Income tax expense $2,000