on Hoot Ltd acquired machinery at a purchase price of $31.6 million on April 1, 2020. Beyond the purchase price, the entity incurred shipping charges, customs duties, and installation fees of $3.8 million, $2.2 million, and $0.9 million respectively. Depreciation on the machinery is to be spread equally over an eight-year period, while capital allowances are to be granted at a rate of 15% on the reducing balance. There are no other assets which give rise to taxable temporary differences. The entity reported taxable profits of $49 million and $63 million for the years to April 2021 and April 2022 respectively. The rate of income tax applicable to the entity is currently 35%. REQUIRED: Calculate the applicable depreciation and capital allowances for both years Determine the deferred tax balances at the end of both years. Determine the total tax expense for both years. Show all relevant workings. Recommended time: 30 minutes