Question $4$

Company X operates a defined benefit plan for its employees. During the year

ended $31$ December $20$X$8,$ Company X records a total cost of CU $1$ million, of

which CU $800,000$ is allocated to profit or loss and CU $200,000$ to other

comprehensive income $(\text{'}$OCl$\text{'}).$ In January $20$X$9$ it makes a funding payment of

CU $400,000,$ a tax deduction for which is received through the current tax charge

for the year ended $31$ December $20$X$9.$ The tax rate is $40\%.$

Assuming Company X is able to recognise a deferred tax asset for the entire CU

$1$ million charged in $20$X$8,$ what is the tax amount recognised in the OCI?

CU $400,000$

CU $0$

CU $200,000$

CU $80,000$