Use the Following Information to Answer This Question

question 20

Multiple Choice

Use the following information to answer this question.
An extract of a company's draft statement of financial position at 30 June 2012 discloses the following:
Plant (at cost) $500 000
Less accumulated depreciation 300 000 $200 000
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:

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Definitions:

Economic Development

The approach a nation takes to boost the economic, political, and social welfare of its inhabitants.

Social Overhead Capital

Investment in basic infrastructure facilities such as roads, bridges, and utilities that are necessary for economic development.

Basic Infrastructure

Fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

Power Generation

The process of producing electricity through various means like fossil fuels, nuclear power, or renewable resources.