1. Tulip Ltd is an ASX-listed company and so complies with the requirements of AASB 112 Income Taxes. The following information has been extracted from the companys financial statements for the year ended 30 June 2021.

   Liabilities:
   Interest revenue received in advance	$2,500,000

   Additional information:

   • The Taxation Office taxes all revenues on an accrual basis.
   • The corporate tax rate is 30%.

   Required:

   Which of the following statements is CORRECT?

   	A.	The tax base of interest revenue received in advance is equal to $0.
   	B.	The tax base of interest revenue received in advance is equal to $2,500,000.
   	C.	The interest revenue received in advance gives rise to a permanent difference and so no deferred tax asset or deferred tax liability is recognised.
   	D.	Tulip Ltd would recognise a deferred tax asset of $750,000 in relation to the interest revenue received in advance.