Required: For each situation, identify taxable or deductible temporary differences for the year ended 31 December 2018. Justify your answers. 2 A company has a building that was acquired in 2018 for RM3 million. The building is rented to a third party, thus it is recognized as an investment property since its acquisition. The chooses to account the asset using the fair value method. At the end of the year, the fair value of the building is RM2.8 million. Cumulative depreciation of the building for tax purposes is RM300.000. Required: company Given a 30% tax rate and a current year tax payable of RM80,000, prepare the journal entry to recognize deferred tax (assume that the presumption of recovery through sale for the investment property is rebutted). 3 The following information relates to Dewberry Bhd.: (a) EBITDA (earnings before interest, tax, depreciation and amortization) for year ended 31 December 2018 is RM300,000. (b) No interest payable in 2018. (c) No amortization. (d) There is an equipment costing RM100,000 at 1 January 2018. The depreciation rate applied is 10% based on a straight-line method. The equipment has no scrap value. (e) Capital allowance is 25% on reducing balance basis. Required: Given a 20% tax rate, prepare the journal entry to recognize deferred tax.