Rosemary Limited ('RL') was set up in January 2012 with a financial year end at 31 December. No deferred tax has been provided since its establishment. For the purpose of computing the deferred tax balance, the relevant financial items have been extracted from the statements of financial position of 2015 and 2016 as follows: RL has always been a profitable operation and it is likely that it will continue generate taxable profits in future years against which any resulting deferred tax assets can be utilized. The Inland Revenue Department also allows RL to offset current tax assets against current tax liability. Assume a constant tax rate of 15%. Required: a Discuss why RL needs to provide for deferred tax. b Determine the deferred tax assets and liability for 2015 and 2016. c Prepare the accounting entries to record the deferred tax adjustments in 2016