(c) At 31 December 2015, Blue Label plc had manufactured whisky at a cost of Rs1,000. On 1 January 2016 it sells the whisky to Northern Bank Ltd for Rs1,400 on the binding agreement that Blue Label plc has to buy back the whisky from Northern Bank Ltd on 31 December 2018 at a price of Rs2,000. Blue Label has a calendar year end. Required: Prepare relevant extracts of both the income statement of Blue Label for the year ended 31 December 2016 and its statement of financial position as at 31 December 2016. [5 marks] (d) Happy Ltd purchased an item of plant for Rs600,000 on 1 January 2014. The plant had an estimated life of 3 years with a nil residual value. . The plant is depreciated on a straight line basis. The Mauritius Revenue Authority (MRA) does not allow depreciation as a deductible expense. Instead, a tax deductible expense of Rs400,000 in 2014, Rs150,000 in 2015 and Rs50,000 in 2016 can be claimed. The rate of income tax is 20%. Required: (a) Compute the Transfer (to)/From Deferred tax that would be included in the Tax expense for the calendar years 2014, 2015, and 2016. (b) [3 marks] Compute the deferred tax liability that would appear in the statement of financial position as at 31 December 2014 and 31 December 2015. [2 marks]