The following information has been obtained in order to allow completion of ABC Company deferred tax balances as at 31st December 2015. Statement of financial position at 31st December 2015 - Extracts Carrying amount Tax base Assets Rs. 000 Rs. 000 Land & buildings 45,500 17,500 Plant and equipment 68,000 26,000 Cost of investment in Larry 750 750 Investments 72,000 65,000 Dividend receivable 150 Liabilities Long-term debt 20,500 21,000 Trade payables 9,500 9,500 Defined benefit liability 1,000 Deferred tax liability (31st December 2014) 13,500 (1) ABC revalues its land and buildings on an annual basis. It has no investment properties. The fair value of land and buildings was Rs. 60 million at 31st December 2015. The 2015 revaluation has not yet been accounted for in ABC's financial statements. The pre-tax revaluation surplus as at 31st December 2014 stood at Rs. 24m. (ii) The balance on the investments line relates to a portfolio of equity holdings. Some of these are categorised as fair value through profit or loss and the balance as available-for-sale. (iii) The fair value loss on Fair Value through P&L investments was Rs. 1m during 2015. This loss is considered to be temporary in nature. The entire portfolio of equity holdings was acquired during 2015. (iv) Tax relief on the defined benefit expense is given on a cash basis. (v) Co. borrowed Rs. 21m just before the year end and incurred transaction costs of 500k. Transaction costs are allowable in full in the year in which a loan is raised. (vi) The tax rate changed from 30% to 28% in the current year. Required: 1. Prepare a schedule of temporary differences and resultant deferred tax. (10 marks) 2. Deferred tax liability/asset for inclusion in FS (Show movement). (5 marks) 3. Pass Journal Entries. (5 marks) The following information has been obtained in order to allow completion of ABC Company deferred tax balances as at 31st December 2015. Statement of financial position at 31st December 2015 - Extracts Carrying amount Tax base Assets Rs. 000 Rs. 000 Land & buildings 45,500 17,500 Plant and equipment 68,000 26,000 Cost of investment in Larry 750 750 Investments 72,000 65,000 Dividend receivable 150 Liabilities Long-term debt 20,500 21,000 Trade payables 9,500 9,500 Defined benefit liability 1,000 Deferred tax liability (31st December 2014) 13,500 (1) ABC revalues its land and buildings on an annual basis. It has no investment properties. The fair value of land and buildings was Rs. 60 million at 31st December 2015. The 2015 revaluation has not yet been accounted for in ABC's financial statements. The pre-tax revaluation surplus as at 31st December 2014 stood at Rs. 24m. (ii) The balance on the investments line relates to a portfolio of equity holdings. Some of these are categorised as fair value through profit or loss and the balance as available-for-sale. (iii) The fair value loss on Fair Value through P&L investments was Rs. 1m during 2015. This loss is considered to be temporary in nature. The entire portfolio of equity holdings was acquired during 2015. (iv) Tax relief on the defined benefit expense is given on a cash basis. (v) Co. borrowed Rs. 21m just before the year end and incurred transaction costs of 500k. Transaction costs are allowable in full in the year in which a loan is raised. (vi) The tax rate changed from 30% to 28% in the current year. Required: 1. Prepare a schedule of temporary differences and resultant deferred tax. (10 marks) 2. Deferred tax liability/asset for inclusion in FS (Show movement). (5 marks) 3. Pass Journal Entries