C Ltd company has a depreciable non-current asset that cost $300 and has a carrying amount of $200. For tax purposes, accumulated depreciation amounts to $180.

REQUIRED

(a) Assuming that the tax rate is 30 per cent, what is 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?

[Marks = 3]