Question Two Beach Ltd's financial statements show interest receivable with a carrying amount of $20 000. The related revenue will be taxed by the ATO when the amounts are actually received. Beach Ltd has also a building with a carrying amount of $200 000 and a tax base of $120 000 if the asset were sold immediately (which reflects the effects of indexation for capital gains tax purposes). Assume that the tax rate is 25%. REQUIRED a) What is the amount of the temporary difference? (4 marks) b) Does the temporary difference give rise to a deferred tax asset or a deferred tax liability and what is the amount of the deferred tax asset/liability? (4 marks) c) Assume that the asset will have a tax base of $100 000 and its economic benefits were to be recovered through use within Beach Ltd. Determine the balance of the deferred tax liability or deferred tax asset given the scenario that the asset will be retained for use within Beach Ltd. (2 marks) d) Explain what is meant by the term 'temporary difference' and why does it arise. (3 marks) [Total 13 marks]