Tax effects of a temporary difference The following information was extracted from the records of Emerald Ltd for the year ended 30 June 2019 in relation to equipment that had cost $240 000 on 1 July 2016. Carrying amount $ Future taxable amount S Future deductible amount S Taxable temporary differences $ Deductible temporary differences s Tax base $ Assets Equipment 60 000 60 000 96 000 96 000 36 000 Equipment is depreciated at 25% p.a. straight-line for accounting purposes, but the allowable rate for taxation is 20% p.a. Required Assuming that no equipment is purchased or sold during the years ended 30 June 2019 to 30 June 2021, calculate: 1. the accounting expense and tax deduction for each year 2. the impact of depreciation on the calculation of current tax expense for each year 3. the effect on the deferred tax asset account each year. (L04 and LO5)