On 1 January 2022, Wacken Limited acquired all the issued shares in Latitude Limited. At that date, the land of Latitude Limited had a fair value of $40 000 more than its carrying amount in Latitude Limiteds financial statements. It was sold for $150,000 cash and Latitude Limited will record a gain on sale of $30,000. The land was sold to external parties on 31 December 2023. The tax rate is 30%. The business combination valuation entries in relation to Latitude Limiteds sale of land for the year ending 30 June 2024 will include:

a.

Dr Loss on Sale $ 30,000

Cr Income Tax Expense $ 9000

Cr Transfer from BCVR $ 21,000

b.

Dr Gain on Sale $ 40,000

Cr Income Tax Payable $ 15,000

Cr Transfer from BCVR $ 35,000

c.

None of the other options

d.

Dr Gain on Sale $ 30,000

Cr Income Tax Expense $ 9000

Cr Transfer from BCVR $ 21,000

e.

Dr Cash $ 150,000

Cr Land $ 100,000

Cr Gain on Sale $ 50,000