Hi mike, help me out. A company`s trial balance at 31 march 20X3 shows a debit balance of $700,000 on current tax and a credit balance of $8,400,000 on deferred tax. the directors have estimated the provision for income tax for the year at $4.5m and the required deferred tax provision is $5.6m, $1.2m of which relates to property revaluation.
the answer given is $1.2m
what confused me is how to deal (using T format) with $1.2m of property revaluation which is included in $5.6. thanks