1. A motor vehicle has a book value of RM30,000 and is expected to generate cash flows of RM8,000 per annum over the next three years. If the motor vehicle is sold, its market value less costs of disposal is RM15,000. Assuming that all cash flows occur at the end of the year concerned and that the appropriate discount rate is 7%, the amount of the impairment loss is:

A) RM15,000

B) RM nil

C) RM9,008

D) None of the above

2. An item of property, plant and equipment is shown in a company's statement of financial position at its written down value of RM420,000. For tax purposes, the item's written down value is RM610,000. The residual value of the item at the end of its useful life is expected to be nil. Assuming that the company pays tax at 20%, the resulting deferred tax asset or liability is:

A) Deferred tax liability of RM190,000

B) Deferred tax asset of RM38,000

C) nil

D) Deferred tax liability of RM38,000

E) None of the above

3. DT Bhd has accounts receivable with a carrying value of RM17,000. The carrying value includes an allowance for doubtful debts of RM3,000. The tax rate is 30%. The company must recognise the following deferred tax item:

A) CR Deferred tax liability RM6000

B) DR Deferred tax asset RM6000

C) CR Deferred tax liability RM900

D) DR Deferred tax asset RM900.

E) None of the above