On 1 January 20X3 Betta purchased 100% of the ordinary shares of Alpha. The fair values of the assets and liabilities acquired were considered to be equal to their carrying amounts, with the exception of equipment, which had a fair value of $70m. The tax base of the equipment on 1 January 20X3 was $60m. The tax rate is 25% and the fair value adjustment does not affect the tax base of the equipment. A taxable temporary difference arises for the group because on consolidation the carrying amount of the equipment has increased to its fair value but its tax base has not changed. Required What is the amount of the deferred tax liability? a. $1,000,000 b. $15,000,000 c. $2,500,000 d. $10,000,000 f3 f4 f5 f6