Deferred tax calculation: CA TB TD DT$($SFP$)($Dr$)/($C$)$r R R R R Balance:$(01)/(01)()/(2023)81620$ Land $500000-500000135000$ Machinery $63750035000028750077625$ Inventories $8000080000--$ Prepaid expenses $50005000--$ Net trade receivables $200006000140003780$ Long$-$term liabilities $(1500000)(1500000)--$ Accrued expense $(7000)-(7000)(1890)$ Balance:$(31)/(12)()/(2023)214515$ SURGE LIMITED NOTES FOR THE YEAR ENDED $31$ DECEMBER $20232.$ Income tax expense Major components of tax expense R Current tax expense $-$ Current year $(410200)$ Deferred tax expense $-$ Current year $214515(195685)3.$ Deferred tax liability Analysis of temporary differences R Land $135000$ Machinery $77625$ Net trade receivables $3780$ Accrued expense $(1890)214515$ Additional information: $1.$ The audited trial balance for the year ended $31$ December $2023,$ is as follows: Note DR CR R R Loss before tax $448120$ Land at cost $500000$ Machinery at cost $31500000$ Accumulated depreciation: Machinery $3862500$ Inventories at cost $80000$ Prepaid expense $45000$ Trade receivables $28000$ Allowance for expected credit losses $58000$ Current tax payable $810000$ Share capital $100000$ Retained earnings: $31$ December $202212000$ Deferred tax liability: $31$ December $202281620$ Long$-$term liability $61500000$ Accrued expense: Rental $77000257112025711202.$ The tax consultant correctly calculated the current year$$s tax $($i$.$e$.$ for the year ended $31$ December $2023)$ to be a tax loss of R$410200.3.$ All machinery was purchased and available for use on $1$ March $2020.$ Depreciation is provided for at $15\%$ per annum on cost$.$ The South African Revenue Services $($SARS$)$ allows a wear and tear allowance on machinery at $20\%$ per annum on cost$,$ according to the straight$-$line method. The wear and tear allowance on the machinery is not proportionally allocated to a financial year. $4.$ The prepaid expense relates to building and content insurance for January $2024,$ paid on $1$ December $2023.$ The SARS allows a tax deduction for the prepaid expenses when the expense is paid. $5.$ The full amount of the allowance for expected credit losses qualifies for the $25\%$ deduction in terms of the Income Tax Act. $6.$ The long$-$term liability was due to financing the acquisition of the land and machinery in the past. The SARS does not allow any deductions in respect of this liability. $7.$ The accrued expense was for one month$$s rental which was not paid in $2023.$ The SARS allows a tax deduction when the expense accrues. $8.$ Surge Limited paid a first provisional tax payment of R$10000$ and no second provisional tax payment was made for the $2023$ tax year. $9.$ On $1$ March $2023$ the corporate tax rate of $28\%$ was changed to $27\%.$ Capital gains are taxed at $80\%$ of the normal corporate tax rate. $10.$The directors of Surge Limited are not certain that the company will produce taxable profits in the future due to problems they are experiencing with their current product. Surge Limited has not produced any tax losses up to $31$ December $2022.$ REQUIRED: Write a report to the junior accountant explaining what was incorrectly calculated an$($d$)/($o$)$r disclosed in respect of income tax expense and deferred tax for the year ended $31$ December $2023.$