luda002

This is an example from hell.   I don’t even get what they’re saying.
Are they saying that DTL reflected on the balance sheet should amount
DTL = tax rate * (new carrying amount - tax base) - revaluation surplus * tax rate
which equals $56,000?
I don’t understand this at all. If only a $56,000 increase is reflected on the balance sheet under liabilities, and the assets have increased by $300,000, is the increase in equity $244,000 ?? So confusing…