On 1 January A sold to B a plant which was purchased at a price of 4,000 and depreciated for 2,000. The selling price was 3,500. B was depreciating the asset on a straight-line basis, recognising annual depreciation of 400; A, however, recognises annual depreciation (on a straight-line basis) of 250. Assume a tax rate of 50%. Debit 500 Operating revenues, Credit 500 Plant, Debit 150 Operating expenses, Credit O 150 Plant, Debit 325 Def. Tax Asset, Credit 325 Net Income, Debit 325 Net Income, Credit 325 Income Tax Debit 500 Operating expenses, Credit 500 Plant, Debit 250 Operating expenses, Credit O 250 Plant, Debit 125 Def. Tax Asset, Credit 125 Net Income, Debit 125 Net Income, Credit 125 Income Tax Debit 4000 Operating expenses, Credit 4000 Plant, Debit 250 Operating expenses, O Credit 250 Plant, Debit 125 Def. Tax Asset, Credit 125 Net Income, Debit 125 Net Income, Credit 125 Income Tax O None of the other answers are correct