On 30 June 2020, XYZ Limited had an item of plant with an original cost of $100 000 and accumulated depreciation of $40 000. At this date, the fair value of the plant was $75 000 and XYZ Limited revalued the plant. Assuming a tax rate of 30%, the tax effect of the revaluation would be recorded as which of the following?

Select one:

a.Income tax expense OCI

Dr

4 500

Current tax liability

Cr

4 500

b.Deferred tax asset

Dr

4 500

Income tax expense OCI

Cr

4 500

c.Deferred tax asset

Dr

4 500

Current tax liability

Cr

4 500

d.Income tax expense OCI

Dr

4 500

Deferred tax liability

Cr

4 500

e.Income tax expense P&L

Dr

4 500

Deferred tax liability

Cr

4 500