8. Prepare the tax effect Journal Entries for the following independent situations and explain why each gives rise to a Deferred Tax Asset or a Deferred Tax Liability at June 2016.

Tax Rate is 30%.

(a)A publishing company has received $20,000 of subscriptions in advance of publications. This revenue will be recognised in the accounting records over the next four years. This amount is treated as assessable income for income tax purposes.