The following information pertains to Entiguan Sports for the 2006 year-end. The treatment of items for accounting and tax purposes is based on fictitious accounting and tax standards and is not specific to a particular jurisdiction. Calculate the tax base and carrying amount for each item.

1. Donations : Entiguan Sports made donations of €100,000 in the current fiscal year.

The donations were expensed for financial reporting purposes, but are not tax deductible based on applicable tax legislation.

2. Interest received in advance: Entiguan Sports received in advance interest of €300,000.

The interest is taxed because tax authorities recognize the interest to accrue to the company (part of taxable income) on the date of receipt.

3. Rent received in advance: Entiguan recognized €10 million for rent received in advance from a lessee for an unused warehouse building. Rent received in advance is deferred for accounting purposes but taxed on a cash basis.

4. Loan: Entiguan Sports secured a long-term loan for €550,000 in the current fiscal year. Interest is charged at 13.5 percent per annum and is payable at the end of each fiscal year.