The following information are extracted from the accounting record of Budi Bhd for the year ended 31 December 2020. 1. 2. 3. 4. 5. 6. 7. 8. In January 2016, Budi Bhd acquired a building for RM2 million with an estimated useful life of 40 years. It is the company's policy to depreciate the building on a straight line basis. On 31 December 2020, the building was revalued to RM2.2 million. The company has no intention to dispose the revalued building. Rent collected in advance on 1 January 2020, totalled RM60,000 for a 3 year period. Of this amount, RM40,000 was reported as unearned at 31 December for book purposes. Product warranties were estimated to be RM50,000 in 2020. Actual repair and labor costs related to the warranties in 2020 were RM20,000. The remainder is estimated to be paid evenly in 2021 and 2022. A donation of RM5,000 was made to Inland Revenue Board's approved charity fund organised by the local community during the year. Trade and other payables include an accrual for compensation of RM12,000 to be paid to employees after the financial year ends. Legal expense of RM8,000 was deducted for financial reporting. It will be deducted for income taxes when paid in a future year. A penalty of RM3,500 was imposed by the government on the company in current financial year. The taxable profit for the year ended 31 December 2020 was RM4,150,000. 9. The deferred tax asset brought forward was RM50,000. Under the tax rule, the building entitled capital allowance at a rate of 20% in the first year and 10% in the remaining years. The current tax rate was reduced to 24%. Assume the previous year's tax rate was 25%. REQUIRED: (a) Calculate the temporary difference for the above situation and indicate whether the temporary difference is taxable or deductible. (6 Marks) (b) Calculate the amount of tax expense and deferred tax for the year 2020. Prepare the necessary journal entries. (9 Marks)