Green Leaves Berhad (GLB) provides the following information for the purpose of computing the deferred tax liability for the year ended 2019 and 2020. 1. 2. 3. 4. 5. Research and development (R&D) expenditure refers to the development cost that was capitalized. The tax law allows all R&D costs to be written off immediately in computing taxable profit. The company provides for doubtful debts but tax rules allows only specific bad debts. Accrued interest relates to the loan taken on 1 July 2019. Interest is paid in arrears on 30 June. Interest paid is allowed for tax purpose. The company provides for warranties on goods sold. But the tax rule allows when reimbursement is made. In addition, penalties and fines are not allowed for deduction of taxable profit. The carrying amount and tax base of financial statement items for GLB as at 31 December 2019 and 2020 are as follows: 31 December 2019 Carrying 31 December 2020 Carrying Tax amount Base amount Base RM'000 RM'000 RM'000 RM'000 Property, Plant & Equipment 15,250 12,100 17,450 13,100 Research and development 1,500 700 Accounts receivables 1,250 1,400 1,450 1,100 Inventories 2,000 2,000 1,450 1,100 Bank 750 50 750 3,000 3,000 Trade Payables 1,500 1,500 2,750 2,750 Accrued interest 250 50 . 250 Penalties payables 200 200 10% Bank loan 5,000 5,000 5,000 5.000 Provision for warranties 400 200 Deferred tax payables at 1 450 450 962.5 962.5 January Share capital Retained Profits 7,000 7,000 7,000 7,000 6,050 2,300 9,437.5 3,987.5