Question 3 The following information is extracted from the accounting records of Lolipop Bhd as at 30 June 2019: Tax Base (RM'000) Carrying amount (RM'000) 50,400 48,000 Property, plant and equipment Provision for warranty 15,000 11,000 The company has a deferred tax liability of RM500,000 as at 1 July 2018. There are no temporary differences arising from its other assets and liabilities as at 30 June 2019. The company estimated that there would be insufficient taxable profits for the year ended 30 June 2019 to utilise deferred tax assets, if any. Income tax rate for 2019 is 20%. Required: a. Determine the value of deferred tax asset or deferred tax liability. Please show the workings. (4 marks) Advise the company on the recognition of deferred tax asset or deferred tax liability and the deferred tax income or deferred tax expense for the year ended 30 June 2019 in accordance with MERS 112 Income Taxes. (4 marks)