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An entity purchased machinery two (2) years ago for $12 million. The entity depreciates this class of assets on the straight line basis at a

An entity purchased machinery two (2) years ago for $12 million. The entity depreciates this class of assets on the straight line basis at a rate of 20% per annum. The tax authority allows for the asset to be depreciated at 30% a year for tax purposes. Provide deferred tax provision for the current year, December 2010, assuming the income tax rate is 35%.

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