Question 4 (a) Explain temporary differences. [4 marks] (b) State the tax base of each of the following assets / liabilities. (0) A machine cost RM10,000. For tax purposes, depreciation of RM5,000 has already been deducted in the current and prior periods and the remaining cost will be deductible in future periods, either as depreciation or through a deduction on disposal. Revenue generated by using the machine is taxable, any gain on disposal of the machine will be taxable and any loss on disposal will be deductible for tax purposes. (ii) Interest receivable has a carrying amount of RM5,000. The related interest revenue will be taxed on a cash basis. Current liabilities include accrued expenses with a carrying amount of RM10,000. The related expense will be deducted for tax purposes on a cash basis. (iv) A loan payable has a carrying amount of RM500,000. The repayment of the loan will have no tax consequences. [6 marks] Question 4 (a) Explain temporary differences. [4 marks] (b) State the tax base of each of the following assets / liabilities. (0) A machine cost RM10,000. For tax purposes, depreciation of RM5,000 has already been deducted in the current and prior periods and the remaining cost will be deductible in future periods, either as depreciation or through a deduction on disposal. Revenue generated by using the machine is taxable, any gain on disposal of the machine will be taxable and any loss on disposal will be deductible for tax purposes. (ii) Interest receivable has a carrying amount of RM5,000. The related interest revenue will be taxed on a cash basis. Current liabilities include accrued expenses with a carrying amount of RM10,000. The related expense will be deducted for tax purposes on a cash basis. (iv) A loan payable has a carrying amount of RM500,000. The repayment of the loan will have no tax consequences. [6 marks]