Spring Day Ltd Has a Piece of Equipment That It

Spring Day Ltd has a piece of equipment that it has revalued to its fair value of $90 000 this period.It originally cost $80 000 and the accumulated depreciation for both accounting and tax purposes is $20 000.There is no intention to sell the equipment in the near future.The tax rate is 30%.What is the journal entry to reflect the revaluation's tax implications?

A)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Income tax expense } & \$ 9000 & \\\hline \mathrm { Cr } & \text { Deferred tax liability } & & \$ 9000 \\\hline\end{array}$$
B)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Asset revaluation reserve } & \$ 9000 & \\\hline \mathrm { Cr } & \text { Deferred tax liability } & & \$ 9000 \\\hline\end{array}$$
C)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Deferred tax asset } & \$ 9000 & \\\hline \mathrm { Cr } & \text { Asset revaluation reserve } & & \$ 9000 \\\hline\end{array}$$
D)
$$\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Income tax expense } & \$ 3000 & \\\hline \mathrm { Cr } & \text { Deferred tax liability } & & \$ 3000 \\\hline\end{array}$$