Income Taxes

SECTION A During the year ended 31 December 20X9, Alpha Co revalued its headquarters building upwards by $2,000,000. The corporate tax rate is 25%. The tax base of the building did not change as a result of the revaluation. What is the correct accounting entry to record the deferred tax impact of this revaluation?

**Section A** During the year, Alpha Co revalued its headquarters building upwards by $500,000. The corporate tax rate is 20%. Alpha Co has no intention of selling the building. How should the deferred tax consequences of this revaluation be recognized in the financial statements?

**Section A** Gamma Co revalued its land upwards by $2 million during the year. The tax base of the land remains at its original historical cost. The corporate tax rate is 25%. Gamma Co has no intention of selling the land in the foreseeable future. How should the deferred tax implication of this revaluation be accounted for?