Main Beach Ltd has a depreciable asset with a carrying amount of $200 000 and a tax base of $120 000 if the asset were sold immediately (which reflects the effects of indexation for capital gains tax purposes). On the other hand, the asset will have a tax base of $100 000 if its economic benefits were to be recovered through use within the organization.

REQUIRED

Assuming a tax rate of 30 per cent, determine the balance of the deferred tax  liability for the scenario of the asset being sold immediately and for the alternative scenario of the asset being retained for use within Main Beach Ltd.