International Accounting Standards 8

xyz purchased an item of plant for $5000000 on 1st October 2011. it had an estimated life of eight years and an estimated residual value of $800000. the plant is depreciated on a straight line basis. the tax authorities do not allow depreciation as a deductible expense. instead a tax allowance of 40% of the cost of this type of asset can be claimed against income tax in the year of purchase and 20% per annum (on a reducing balance basis) of its tax base thereafter. the rate of income tax can be taken as 30% and the current tax estimate for the year 2014 is $20000000. the deferred tax provision at the end of 2012 was $443000.

REQUIRED;
in respect to the above item of plant, calculate the deferred tax charge/ credit in.
xyz statement of profit or loss for the year 30 September 2014 and the deferred tax balance in the statement of financial position at 30 December 2013 and 2014.