7. The financial controller of ABC Limited provides the following list of assets and liabilities held by the company, which has just completed its first year of trading: Explanations Items Machinery Land Accrued vacation Interest payable Depreciation greater than capital allowance The market value has increased by 25% No employee has taken vacation to date Interest will be paid next year Amounts $150 million $500 million $175 million $125 million Required: Indicate whether the temporary difference in each of the above scenarios would be taxable or deductible, and explain why. 7. The financial controller of ABC Limited provides the following list of assets and liabilities held by the company, which has just completed its first year of trading: Explanations Items Machinery Land Accrued vacation Interest payable Depreciation greater than capital allowance The market value has increased by 25% No employee has taken vacation to date Interest will be paid next year Amounts $150 million $500 million $175 million $125 million Required: Indicate whether the temporary difference in each of the above scenarios would be taxable or deductible, and explain why.