1. Donohoe plc prepares its financial statements by 31 December each year. Profit before taxation for the year ended 31 December 2021 was €297,700. Taxable profit for the same period was €72,000. The following data relate to the year ended 31 December 2021: 
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3. 1. The balance on the accounts receivable is €125,000 before a general allowance for doubtful debts of 16%. 
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5. 2. In August 2021 Donohoe plc opened a deposit account with Tracker Bank. Deposit interest accrued at 31 December 2021 amounted to €123,000. This interest was credited to Donohoe plc’s profit or loss in the year ended 31 December 2021 but will not be received until February 2022. 
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7. 3. A tax loss of €40,000 was carried forward at the end 31 December 2020 
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9. 4. On 26 September 2016 Donohoe plc purchased a freehold building for €129,000. This building has been revalued during 2021 to €321,000. This building is accounted for under IAS 16, Property, Plant and Equipment.
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11. 5. At 31 December 2020 Donohoe plc had plant and equipment which had a cost of €800,000. Depreciation to that date amounted to €300,000 while capital allowance amounted to €235,000. During 2021, depreciation of €144,000 was charged on this plant and equipment and capital allowances of €98,000. This plant and equipment is accounted for under IAS 16, Property, Plant, and Equipment. 
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13. 6. Donohoe plc’s defined benefit pension plan is managed by a pension fund company based in Tralee. Donohoe plc paid €34,000 into the pension plan in March 2022. This was treated as an accrued pension expense in computing accounting profit for the year ended 31 December 2021. 
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15. 7. Deferred income of €27,500 was received on 18th November 2021. Donohoe plc will not undertake the work corresponding to the €58,000 deferred income until January 2022. The following trial balance extract relate to Donohoe plc at 1 January 2021: € Retained earnings at 1 January 2021 432,000 Revaluation surplus at 1 January 2021 321,000 Deferred tax (liability) at 1 January 2021 21,000 The corporation tax rate is expected to be 25% for the foreseeable future. Donohoe plc accounts for its deferred tax in accordance with IAS 12, Income Taxes. 
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17. Required (a) Prepare a table showing the carrying values, tax bases, and temporary differences for each of the items above for the year ended 31 December 2021. 
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19. (b) Show the relevant extracts of Donohoe plc’s Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position for the year ended 31 December 2021. 
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21. (c) Outline the arguments against discounting deferred tax assets and liabilities.