3.1 Indicate whether the following statements related to normal tax is True or False. 3.1.1 Temporary differences are caused by differences in the timing of therecognition of elements from a tax and accounting perspective. ( 1 mark) 3.1.2 When the company has made a tax loss in a particular year of assessment there is still a current income tax charge for the year. (1 mark) 3.1.3 Under-provision of current income tax adjustment of the previous year requires us to debit the current income tax expense and credit current tax payable: income tax account. (1 mark) 3.1.4 Income tax, VAT and employees' tax balances may be set off against each other when presenting the tax payable or receivable in the statement of Financial Position. (1 mark) 3.1.5 The effective rate of income tax is calculated as taxation expense divided by profit before tax. (1 mark) 3.2 Service Limited has provided you with the following information for the year ended 31 December 2019 Profit before tax R450000 Included in the profit before tax is: - Donations to various charities(non-deductible for tax) R60000 - Depreciation on machine(purchased in 2018 and sold on 31 December 2019) R15000 - (Wear and tear: R25000) - Profit on sale of the machine above R40000(Cost price R70000 and base cost R75000) The following additional information is also provided to you: Provisional tax payments for the year R120000 Tax assessed for 2018(assessment received in 2019) R114500 The income tax expense for 2018 (as per SOCI) R125500 There were no differences between accounting profit and taxable Profit other than those mentioned above. Current normal tax is levied at 30% and the inclusion rate for capital gains tax is 50%. Required: 3.2.1 Prepare a statement showing the reconciliation between accounting profit and taxable profit for the year ended 31 December 2019. (7 marks) 3.2.2 Prepare all the journal entries in the books of Service Limited related to the adjustment of income tax expense for the year ended 31 December 2019. (6 marks) 3.2.3 Prepare the taxation note for inclusion in the financial statements of Service Limited for the year ended 31 December 2019. Also include effective tax rate in the Note. Ignore tax rate reconciliation.(2 marks)