Bowden Limited purchased an item of plant for $2,000,000 on 1 October 2010. It had an estimated life of eight years and an estimated residual value of $400,000. The plant is depreciated on a straight line basis. The tax authorities do not allow depreciation as a deductible expense. Instead a tax expense of 40% of the cost of this type of asset can be claimed against income tax in the year of purchase and 20% per annum (on a reducing balance basis) of its tax base thereafter. The rate of income tax can be taken as 25%.

Required:

In respect of the above item of plant, calculate the deferred tax charge/credit in Bowdens Statement of Comprehensive Income for the year to 30 September 2013 and the deferred tax balance in the statement of financial position at that date.