On $1$ January $20$X$8$ Simone Co decided to revalue its land for the first time. A qualified property

valuer reported that the market value of the land on that date was $$80,000.$ The land was

originally purchased $6$ years ago for $$65,000.$

The required provision for income tax for the year ended $31$ December $20$X$8$ is $$19,400.$ The

difference between the carrying amounts of the net assets of Simone $($including the revaluation of

the land above$)$ and their $($lower$)$ tax base at $31$ December $20$X$8$ is $$27,000.$ The opening balance

on the deferred tax account was $$2,600.$ Simone$$s rate of income tax is $25\%.$

Required:

Prepare extracts of the financial statements to show the effect of the above transactions.