1. How do you determine the income tax expense of a company for accounting purposes? 2 Marks 2. Can deferred tax assets be offset against deferred tax liabilities? 3 Marks 3. A company has prepaid rent with a carrying value of $400000. A tax deduction was obtained at the time the rent was paid. Required: 1. 1. Assuming that the tax rate is 30 per cent, what is the amount of the temporary difference? 4 Marks 2. Does this give rise to a deferred tax asset or a deferred tax liability and what is the amount of the deferred tax asset/liability? 3 Marks