Case study 2: Part 1: There had been a group discussion on various aspects related to accounting amongst few graduates. Each graduate had come up with an opinion about the topics that are been discussed below. You are required to review each of the discussion and validate their opinion with required explanation. Also, you need to provide the correct opinion in case you disagree with all the opinions. (2 marks - Min 100 words) Discussion: There is a connection between the amount of deferred tax asset or deferred tax liability calculated for the year and the amount of taxes which are payable for the year. Graduate 1 mentioned that there is a connection between deferred tax asset and deferred tax liability but there is no connection with the amount of taxes which are payable Graduate 2 stated that there is no direct connection between the deferred taxes and amount of taxes which are payable for the year. It all depends on tax rate Graduate 3 opined that there exists a connection between the amount of deferred tax asset and deferred tax liability calculated as they required to be shown in the statement of financial performance. Graduate 4 completely disagreed with the given statement Part 2: You are a junior accountant who is involved in tax related matters of the company. The senior accountant has provided with a scenario related to deferred taxes which you need to deal with. The tax rate is 20%. The Company has purchased Office equipment in the year 2015 for RO 65,000. The computers are estimated to have a useful life of 16 years of useful life. It was decided that for the book purposes the depreciation rate to be used should be 6.5% on cost. But for the tax purposes the depreciation rate to be used is 15% straight line method for the first 5 years and 5% for the next five years. The company wants to know the deferred tax amounts that will be generated due to such machinery depreciation for the first 10 years of the asset life. You are required to provide a detailed calculation for the above situation along with necessary comments showing deferred tax movement over the first 10 years of the asset life