Question 3: Dee plc is unsure how to apply the requirements of IAS 12 Taxation, particularly in relation to deferred tax The following information relates to Dee plc at 31 December 2020: i) Dee received income during the year end 31st December 2020 for work to be performed in 2022. The tax base for this liability was 36 million lower than its carrying value. (7 marks) ii) Dee had revalued some of its land to 90 million at 31 December 2020. At this date the carrying value and tax base of the land were both 70 million (7 marks) ill) From 1 January 2018 Dee has run a research and development project aimed at producing a new product. Each year to date Dee has spent 15m on the project. During 2018. Dee believed there was not yet any clear new product identified but since then the creation of a new produce was probable. The product has not yet begun to sell and the tax authorities require all research and development to be deducted from income in the year it is paid. (8 marks) iv) Taxable trading losses carried forward at 31 December 2020 were 64 million Dee estimated there were suitable future taxable profits of 50 million on which to recover these losses (8 marks) Assume a tax rate of 30%. Required: Calculate and explain, for each of the above circumstances, the provision for deferred tax required in the balance sheet of Dee as at 31" December 2020. Note: the mark allocation is shown above. Total 30 marks