The accounting profit before tax of Pipe Ltd for the year ended 30 June 2021 was $10,000 and included the following income and expense items: rent revenue $45,000, depreciation expense plant $13,000.

A draft statement of financial position as at 30 June 2021 revealed the following: rent receivable $25,000 (30 June 2020 $20,000), plant $130,000 (30 June 2020 $130,000). For tax purposes, plant is depreciated at 20% straight-line. The company tax rate is 30%.

For the year ended 30 June 2021 the current tax journal entry is:

Select one:

a. DR Income tax expense (current) 2,400 CR Current tax liability 2,400

b. DR Deferred tax asset 2,400 CR Income tax expense (current) 2,400

c. DR Deferred tax asset 8,000 CR Income tax expense (current) 8,000

d. DR Deferred tax asset 9,300 CR Income tax expense (current) 9,300