At the end of its first year of operations, Clarissa Limited...

At the end of its first year of operations, Clarissa Limited revalued the land asset upwards by $50,000. The land was acquired for $350,000 at the start of the year. The company tax rate is 30%. Assuming no other temporary differences occur, the company will record:

Select one:

a.

Dr Deferred tax asset $15,000

b.

Cr Deferred tax asset $15,000

c.

Dr Deferred tax liability $15,000

d.

Cr Deferred tax liability $15,000