Gillet Limited Acquired a Block of Land for $150 000

question 22

Multiple Choice

Gillet Limited acquired a block of land for $150 000 on 1 January 2012. This amount was also the tax base of the land. On 30 June 2014, the land was revalued to $200 000. The tax rate is 30%. The appropriate journal entry to recognise the net effect of the revaluation is which of the following?

• A) DR Gain on revaluation - OCI $50 000 CR Asset revaluation surplus $50 000
• B) DR Land $35 000 DR Deferred tax asset $15 000
• CR Asset revaluation surplus $50 000
• C) DR Land $50 000 CR Deferred tax liability $15 000
• CR Asset revaluation surplus $35 000
• D) DR Gain on revaluation - OCI $50 000 CR Income tax expense - OCI $15 000
• CR Asset revaluation surplus $35 000

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Definitions:

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Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help might not be available.

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Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of different topics.