A Plc acquired plant on 1 January 2005 costing K100m.The plant has a useful life of 5 years. A Plc depreciates plant on straight line basis with nil residual value. For tax purpose, A Plc will claim an initial allowance of 25% in year ended 31 December 2005 and the balance of the cost as wear and tear allowances over the next four years on straight line basis. the current corporation tax stands at 30% of the taxable profit.

Required

i) compute differed tax for A plc for all the years over the useful life of the plant.

ii) journalize the differed tax computed for all the years.

NOTE; A Plc prepares accounts to 31 December each year.