taxation 3rd year

QUESTION 8 (10 Marks) On the 1 Jan 20x6, a Company has a deferred tax liability of R50 000, stemming from a temporary difference in the carrying value and tax base of its fixed assets. The following information is available concerning these fixed assets at the Company's year end date of 31 Dec 20x6: Carrying value R10 000 000 Tax Base R 9 000 000 If the Company is subject to a 25% corporate tax, calculate and explain the deferred tax movement which has occurred based on these fixed assets in the 20x6 financial year