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A company has interest revenue received in advance with a carrying amount of $250,000, which was taxed on a cash basis. It also has a

A company has interest revenue received in advance with a carrying amount of $250,000, which was taxed on a cash basis. It also has a loan payable with a carrying amount of $4000,000.

a) Assuming that the tax rate is 30 per cent, what is the tax base and the amount of the temporary difference?

b) 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?

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