On 1 January 2022, Cow Ltd acquired all the issued shares in Green Ltd. At that date, the inventories of Green Ltd had a fair value of $30 000 LESS than their carrying amount. The inventories were sold during the year ended on 30 June 2023. The company tax rate is 30%.

Required

The tax effect entry to be made on 30 June 2023 in relation to the inventory will be:

1. CR Deferred Tax Liability 9000

2 DR Deferred Tax Asset 9000

3 CR Income Tax Expense 9000

4 DR Income Tax Expense 9000

which one is correct