Case study 5: 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: In calculation of deferred tax one needs to find out the differences which are subsequently settled and difference which are not subsequently settled. Such differences are usually of income and expenses taken into account in tar books and company books. Graduate 1 mentioned that deferred tax does not need such difference to be found as they relate only to items of assets and liabilities Graduate 2 stated that deferred tax is because of income and expenses that are not subsequently settled, and one needs to focus on such items only Graduate 3 opinioned that deferred tax is because of differences which are subsequently settled but between assets and liabilities. Graduate 4 agreed with the statement of graduate 2 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 15%. The Company has purchased a Building in the year 2017 for RO 1,250,000. The building is estimated to have 25 years of useful life. It was decided that for the book purposes the depreciation rate to be used should be 4% straight line method. But for the tax purposes the depreciation rate to be used is 11.111% on cost. 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