Provides the following information regarding its assets and liabilities as at 31 December 20X1

Test your understanding 1 - Dive (temporary differences) An entity, Dive, provides the following information regarding its assets and liabilities as at 31 December 201. \begin{tabular}{|l|l|l|l|} \hline & Carrying amount & Tax base & Temporary difference \\ \hline Assets & & \\ \hline A machine cost $100,000. Depreciation of $18,000 has been charged to date. Tax allowances of $30,000 have been claimed. & & & \\ \hline Interest receivable in the statement of financial position is $1,000. The interest will be taxed when received. & & & \\ \hline Trade receivables have a carrying amount of $10,000. The revenue has already been included in taxable profit. & & & \\ \hline Inventory has been written down by $500 to $4,500 in the financial statements. The reduction is ignored for tax purposes until the inventory is sold. & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline Liabilities \\ \hline Current liabilities include accrued expenses of $1,000. This is deductible for tax on a cash paid basis. & & & \\ \hline Accrued expenses have a carrying amount of $5,000. The related expense has been deducted for tax purposes. & & & \\ \hline \end{tabular} Required: Complete the table with carrying amount, tax base and temporary difference for each of the assets and liabilities