Case Study 1 ACY Limited ("ACY") purchased a specialized machine for its business use for a total price of $3,000,000, paid in cash, on 1 January 2023 . The total price included installation fee of $50,000, which enabled the machine to be immediately available for ACY's use on 1 January 2023. This is estimated that the machine has a useful life of 10 years with a residual value up to $200,000. Double-declining-balance depreciation method is adopted. On 1 January 2023, to help finance the acquisition of this machine, ACY issued a 5-year zero-interest-bearing note, with a face value of $1,000,000, due on 31 December 2027 . The market rate is 8% for notes with similar risks. Question For the year ended 31 October 2023, how much interest expense shall be reported in the Statement of Profit or Loss of ACY? Select one: A. $45,372 B. $66,667 C. \$Nil. All interest shall be capitalized as cost of the machine acquired. D. $54,447 As at 31 December 2023, ACY Limited has a deductible temporary difference of $100,000. Tax rate is 16% for year 2023 and 18% for year 2024 onwards. Net taxable profit is calculated as $800,000. Tax payment for year 2023 shall be paid within 3 months after the year-end date. Question How much deferred tax shall be recognised as at 31 December 2023 ? Select one: A. Deferred tax liability: $18,000 B. Deferred tax asset: $16,000 C. Deferred tax asset: $18,000 D. Deferred tax liability: $16,000