Rose Limited (RL) is finalizing its financial statements for the year ended 31 December 2017 it has a profit before tax of Rs 2 billion (accounting profit before tax). In this respect, the following information has been gathered:

Applicable tax rate is 30% .

On 31 December 2017, PML sold Car-A to Alpha Limited (AL) for PKR 5 million. As per the contract, PKR 1 million would be paid immediately and the balance would be paid after 2 years. Applicable discount rate is 12%. As per tax laws revenue is taxable on receipt basis.

On 20 February 2017, PML sold Car-D to Delta Limited (DL) with one-year free maintenance services at a lumpsum payment of PKR 3.6 million. Payment was made on 1 September 2017 upon delivery of Car-D to DL. PML normally sells Car-D and annual maintenance services separately for PKR 3.5 million and PKR 0.3 million, respectively. As per tax laws revenue is taxable on receipt basis.

On 1 January 2016, a machine was acquired on lease for a period of 4 years at annual lease rental of Rs. 28 million, payable in advance. Interest rate implicit in the lease is 10%. Under the tax laws, all lease related payments are allowed in the year of payment.

Details of fixed assets are as follows:

On 1 January 2017 RL acquired a plant at a cost of Rs. 250 million. It has been depreciated on straight line basis over a useful life of six years.

On 1 July 2017 RL sold one of its four buildings for Rs. 60 million. These buildings were acquired on 1 January 2013 at a cost of Rs. 100 million each having useful life of 30 years.

The dismantling costs will be allowed for tax purposes when paid. Tax depreciation rate for all owned fixed assets is 10% on reducing balance method. Further, full years tax depreciation is allowed in year of purchase while no depreciation is allowed in year of disposal.

Required: Compute the deferred tax liability / asset to be recognised in RLs statement of financial position as on 1st January 2017 and 31 December 2017. Compute amount of Taxation (current and deferred both) to be charged in RLs Profit or Loss statement for the year ended 31 December 2017.