alleryStart learning →Revalued asset stays in use. Is a deferred tax liability recognised?
AOnly for land, not plant
BNo, since no sale is planned
CYes, despite no intent to sell
DOnly when the asset is sold
Answer & Solution
Correct answer: C. Yes, despite no intent to sell
Recovering the revalued amount through use produces taxable income above allowable depreciation, so a liability arises regardless of intention to sell.
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