1.

A taxable temporary difference leads to the payment of:

Select one:

a. less tax in the future and gives rise to a deferred tax asset.

b. more tax in the future and gives rise to a deferred tax liability.

c. more tax in the future and gives rise to a deferred tax asset.

d. less tax in the future and gives rise to a deferred tax liability.

2.

Alpha Limited has an asset with a carrying value of $50,000. The tax base of this asset is $70,000. The tax rate is 30%. The deferred tax item to be recognised by Alpha Limited is:

Select one:

a. Deferred tax liability of $10,000.

b. Deferred tax asset of $6,000.

c. Deferred tax asset of $10,000.

d. Deferred tax liability of $6,000.