On 30 June 2021 George Ltd recorded a gain on revaluation for equipment of $35,000. In the previous year a loss on revaluation for equipment of $20,000 had been recorded. That tax rate is 30%.

On 30 June 2021 the journal entry required for a tax effect is:

Select one:

a.

Dr Income tax expense (OCI) $6,000, Cr Deferred tax liability $6,000

b.

Dr Income tax expense (OCI) $4,500, Cr Deferred tax liability $4,500

c.

Dr Deferred tax liability $10,500, Cr Income tax expense (OCI) $10,500

d.

Dr Income tax expense (OCI) $10,500, Cr Deferred tax liability $10,500