Use the Following Information to Answer This Question B) C)

question 9

Multiple Choice

Use the following information to answer this question. The draft statement of financial position for Banjo Ltd as at 30 June 2021 discloses the following:
Machinery (at cost) $750 000
Less Accumulated depreciation 400 000 $350 000
On the same date, Banjo Ltd assessed the fair value of the machinery to be $400 000.
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 2021 is:

• A) \(\begin{array}{cccc}
• \text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\
• \text { Deferred tax liability } & \mathrm{Cr} & & 15,000
• \end{array}\)
• B) \(\begin{array}{clll}
• \text { Asset revaluation surplus } & \mathrm{Dr} & 15,000 & \\
• \text { Income tax expense - OCI } & \mathrm{Cr} & & 15,000
• \end{array}\)
• C) \(\begin{array}{rlll}
• \text { Income tax expense - OCI } & \mathrm{Dr} & 15,000 & \\
• \text { Asset revaluation surplus } & \mathrm{Cr} & & 15,000
• \end{array}\)
• D) \(\begin{array}{cll}\text { Income tax exp ense - OCI } & \mathrm{Dr}&15,000 \\
• \text { Deferred tax liability } & \mathrm{Cr}&&15,000\\
• \\\text { Gain on revaluation - OCI } & \mathrm{Dr} & 50,000 \\
• \text { Income tax expense - OCI } & \mathrm{Cr} &&15,000 \\
• \text { Asset revaluation surplus } & \mathrm{Cr} &&35,000
• \end{array}\)

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Definitions:

Ingroup Behaviour

Actions and norms exhibited by members within their own group, often characterized by solidarity and loyalty.

Sex Stereotypes

Generalized views or preconceptions about attributes or characteristics that are believed to be typical of males or females.

Racial Stereotypes

Generalized beliefs and expectations about individuals based solely on their race, often resulting in unfair judgments and discrimination.

Self-Handicapping

A cognitive strategy where individuals create obstacles or excuses to avoid self-blame in case of failure.