The Following Information Was Extracted from the Financial Records of Panda

Multiple Choice

The following information was extracted from the financial records of Panda Limited: equipment purchased on 1 July 2014 for $140 000 (accounting depreciation 10% straight line; tax depreciation 20% straight line) . If the company tax rate is 30%, the deferred tax item that will be recorded by Panda Limited at 30 June 2015 is which of the following?

A) Dr Deferred tax asset $14 000
B) Cr Deferred tax asset $4200
C) Dr Deferred tax liability $14 000
D) Cr Deferred tax liability $4200