Use the Following Information to Answer Questions
an Extract

Use the following information to answer questions
An extract of a company's draft statement of financial position at 30 June 2012 discloses the following:
$\begin{array} { l r r } \text { Plant (at cost) } & \$ 500,000 & \\\text { Less Accumulated Depreciation } & \underline { 300,000 } & \$ 200,000\end{array}$

On 30 June 2013 the company assessed the fair value of the plant to be $350 000. At 30 June 2014, the carrying amount of the Plant was $250 000.
The tax rate is 30%. Depreciation rates are 10% p.a. (accounting) and 12.5% p.a. (tax) using the straight-line method.
-The journal entries to adjust for the tax effect of the revaluation at 30 June 2013 is:

A) $\begin{array} { c l l l } \text { Income tax expense - OCI } & \mathrm { Dr } & 45,000 & \\\text { Deferred tax liability } & \mathrm { Cr } & & 45,000\end{array}$
B) $\begin{array} { l l l l } \text { Asset revaluation surplus } & \mathrm { Dr } & 45,000 & \\\text { Income tax expense - OCI } & \mathrm { Cr } & 45,000\end{array}$
C) $\begin{array} { c l l l } \text { Income tax expense } - \text { OCI } & \mathrm { Dr } & 45,000 & \\\text { Asset revaluation surplus } & \mathrm { Cr } & 45,000\end{array}$
D) $\begin{array} { l l r r } \text { Income tax expense - OCI } & \mathrm { Dr } & 45,000 & \\\text { Deferred tax liability } & \mathrm { Cr } & 45,000 \\& & & \\\text { Gain on revaluation - OCI } & \mathrm { Dr } & 150,000 & \\\text { Income tax expense - OCI } & \mathrm { Cr } & 45,000 \\\text { Asset revaluation surplus } & \mathrm { Cr } & 105,000\end{array}$