The Following Information Was Extracted from the Accounting Records of Penguin

question 2

Multiple Choice

The following information was extracted from the accounting records of Penguin Pty Ltd for the year ended 30 June 20X9:
$\begin{array} { l r } &\$\\\text { Interest revenue } & 500000 \\\text { Sales revenue } & 5000000 \\\text { Dividend revenue } & 1500000 \\\text { Depreciation expense } & 700000 \\\text { Wages and annual leave expense } & 1500000 \\\text { Other expense } & 3000000\end{array}$
The company income tax rate is 30%.
The annual leave expense totaled $300 000, and $100 000 of annual leave was paid during the year.
The dividend revenue is not assessable income.
-Under the balance sheet method, what is the amount of the deferred tax expense (or deferred tax revenue) for the reporting period?

• A)$60 000 deferred tax expense
• B)$390 000 deferred tax expense
• C)$60 000 deferred tax revenue
• D)$390 000 deferred tax revenue

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