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: The difference between the provision for tax and the current tax payable for the year is mostly due to deferred tax liability of that year or deferred tax asset of that year or both. Graduate 1 mentioned that most of the time there is no difference between provision for tax and current tax payable Graduate 2 stated that there can be difference between provision for tax and the current tax payable for the year, but such difference is not due to deferred tax liability or deferred tax asset. The main reason is the income and expenses which are considered as per IFRS and not considered as per income tax rules. Graduate 3 mentioned that there is difference between provision for tax and the current tax payable for the year, but such difference arises only due to deferred tax liability. Graduate 4 stated that there is difference between provision for tax and the current tax payable for the year, but such difference arises only due to deferred tax asset. 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 13%. The Company has purchased shipping equipment in the year 2017 for RO 1,375,000. The computers are estimated to have a useful life of 12 years of useful life. It was decided that for the book purposes the depreciation rate to be used should be 8.333% on cost. But for the tax purposes the depreciation rate to be used is 25% straight line method for the first year and 15% 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 tar movement over the first 10 years of the asset life