Question 7 The following assets and liabilities appear in Lampard's Statement of Financial Position at 31 December 2019: i) A loan payable is shown at 100,000. The repayment of the loan will have no tax consequences. ii) A motor lorry which costs 400,000 is shown at its carrying amount of 80,000. For tax purposes, its written down value is 120,000. iii) An account receivable is shown at 250,000. Of this amount, 200,000 has already been taxed, but the remaining 50,000 will be taxed in the accounting period in which it was received. The whole 250,000 has been included in the accounting profit. iv) A provision of 35,000 for product warranty costs made in the year. For tax purposes, the product warranty costs will not be deductible until the company settles the claim. v) An account payable is shown at 12,000. This relates to an expense which has already been deducted when computing accounting profit, but which will not be deducted for tax purposes until it is paid. Required: a. Illustrate the concepts of "temporary differences" and "permanent differences". (5 marks) b. Compute the tax base of each of these assets and liabilities, and identify any taxable or deductible temporary differences. (10 marks)