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Question - A company has liability for employee benefits (relating to long-service-leave) with a carrying amount of $500,000. Which will be deductible when the amounts are actually paid. The company has also accrued wages with a carrying amount of $300,000 which have already been claimed as a deduction for tax purposes.
Required -
A) Assuming that the tax rate is 30%, what is the amount of the temporary difference?
B) Does this give rise to a deferred tax asset or a deferred tax liability, and what is the amount of the deferred tax asset/liability?
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