Sea Otter Ltd Uses the Revaluation Model for All Classes

Sea Otter Ltd uses the revaluation model for all classes of property, plant and equipment. The following information relates to two items of nlant the CRM650 and DRM700

$\begin{array}{llcc} \text { } & \text { CRM650}& \text {DRM700} \\ \text {Cost (acquisition date \( 1 / 1 / 20 \mathrm{X} 1 \) ) } &\$5000000&\$8000000\\ \text { Useful life - taxation } &8\text {years}&8\text {years} \\ \text { Useful life - accounting } &10\text {years}&5\text {years}\\ \text { Fair value \( 36 / 06 / 20 \mathrm{X} 2 \) } &\$5400000&\$7500000\\ \text { } &\\\end{array}$

-For the DRM700, the difference in depreciation for tax and accounting purposes for the year ending 30/06/20X2 results in:

A) a taxable temporary difference of $600 000 and a deferred tax liability of $180 000
B) a deductible temporary difference of $600 000 a deferred tax liability of $180 000
C) a deferred tax expense and a deferred tax liability of $37 500
D) a deferred tax revenue and deferred tax asset of $180 000