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: For tax purposes there are items of expenses and income that are recognized differently as per income tax law. But companies only follow IFRS in recognizing income and expenses. Graduate 1 mentioned that there is no such difference in recognizing income and expenses. Graduate 2 stated he was sure about the companies that they follow IFRS but was not sure about income tax law Graduate 3 opined that there is a difference in recognizing income and expenses, but such differences are very minor. Graduate 4 mentioned that the company also follows only IFRS in recognizing income and expenses for tax purposes. 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 25%. The Company has purchased a Motor Vehicle in the year 2010 for RO 50,000. The Motor vehicle has an estimated to life of 15 years with no residual value. It was decided that for the book purposes the depreciation rate to be used should be 6.667% cost. But for the tax purposes the depreciation rate to be used is 25% straight line method. 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