Q2(a) Statement: The taxes Payable method recognises both current and future tax consequences of transactions.Q2(b)_Information: A company has acquired a piece of land for $500,000 at the beginning of the financial year. At the end of the financial year, the land was revalued to $700,000 and will be sold in the very near future. For tax purposes, capital gains are not taxable in New Zealand. Statement: Therefore, at the end of the financial year (i.e., the balance date), there is no deferred tax to be recognised from the land