I need to answer for question 3

QUESTION 2 (30 Marks) The consolidated accounts of the Redang Bhd group for the year ended 31 March 2022 is as follows. Group Statement of Financial Position for the years ended 31 March 2022 2022 2021 RM'000 RM 000 Property, Plant & Equipment 3,000 900 Investment Properties 1,000 1,000 Investment in associated companies 700 Goodwil on consolidation 1,000 Current Assets Inventory 2,000 1,700 Trade & Other Receivables 3,000 4,550 Deferred Tax Asset 500 Cash & Cash Equivalent 2,200 550 13,400 8,700 Share Capital & Reserves Ordinary shares of RM1 each 6,200 3,000 5% Debentures 1,000 800 Retained profits 2,260 900 9,460 4,700 Non-Controlling Interest 600 550 Current Liabilities Other Payables 600 300 Income Tax Payable 400 400 Employee Benefits 300 300 Deferred Tax Liability 800 100 Trade Creditors 1,240 2,350 13,400 8,700 Consolidated Statement of Comprehensive Income for the year ended 31 March 2022 RM000 Turnover 12,000 Cost of Sales (4,130) 7,870 Distribution expenses (450) Marketing expenses (880) Administration expenses (2,345) Operating profit 4,195 Finance costs (50) Share of profits of associated companies 100 Profit before tax 4,245 Tax (700) Profit after tax 3,545 Profit after tax attributable to: Equity holders of parent 2,600 Non-Controlling Interest 945 3,545 Additional Information: i) Dividend paid and declared by Redang Bhd during the year amounted to 20 sen per share. ii) Included in the consolidated operating expenses are loss on disposal of fixed assets of RM100,000 and depreciation of RM350,000, iii) On 1 April 2021, Redang Bhd acquired a 90% interest in a company called Tioman Bhd for a consideration of RM3 million. The consideration was discharged by issuing 3,000,000 ordinary shares in Redang Bhd at RMI. The fair value of the net assets of Tioman Bhd at date of acquisition were as follows: RM'000 Office Equipment 1,000 Raw Material Stocks 600 Trade Receivables 550 Bank 500 Trade Payables iv) Redang Bhd acquired a 45% interest in a company called Sipadan Bhd on 1 April 2021 by payment of cash of RM600,000. v) On 31 March 2022 machinery with a net book value of RM700,000 was sold for RM600,000 cash. (450) Required: Prepare the consolidated cash flow statement for the year ended 31 March 2022 using the indirect method. QUESTION 3 (30 Marks) a) Outline the different treatment for accounting and tax purposes of the following items: i) Purchased goodwill ii) Allowance for doubtful debts iii) Prepaid insurance iv) Rent received in advance (12 marks) b) A company commenced business on 1 January 2021. On 31 December 2021, an extract of the balance sheet prepared for internal purposes, but excluding the effect of income tax, disclosed the following information: Assets Liabilities & Equity RM Bank 40,000 Accounts payable 80,000 Inventory 100,000 Long service leave 5,000 Trade Debtors 279,000 Retained profits 227,500 Plant & Equipment 300,000 Share Capital 500,000 Accumulated Depreciation (30,000) Software Development cost 90,000 Prepaid Insurance 30,000 Rent Receivable 3,500 RM 812,500 812,500 Additional information: i) The plant was acquired on 1 January 2021. Depreciation for accounting purposes was 10% (straight-line method), while 25% (straight-line) was used for tax purposes. ii) Trade Debtors are after providing for doubtful debts amounting to RM16,000. iii) For accounting purposes, the costs of software development is treated as an intangible asset. For tax purposes, it is deductible in the year incurred. iv) The income tax rate is 20%. Required: Prepare the deferred tax worksheet at 31 December 2021 and record the journal entry for Deferred Tax Asset and Deferred Tax Liability for the current financial year. (18 marks)