Supa$-$Build $($Pty$)$ Ltd is a construction enterprise with a reporting period date of $31$ December of each year. Supa$-$Build $($Pty$)$ Ltd has a profit before tax of R$1875000$ and R$1500000$ for the reporting periods ended $31$ December $2021$ and $31$ December $2022$ respectively.

Additional information:

$1.)$ On $31$ December $2022$ the balance on the deposits received in advance amounts to R$62500(2021-$ R$37500)$ for construction projects that have not yet commenced. In terms of SARS legislation, these amounts will be taxed in the year they are received. No deposits were received before $1$ January $2021.$

$2.)$ Supa$-$Build $($Pty$)$ Ltd replaced its old manufacturing plant on $1$ January $2022$ and put it into production immediately. The information about the plants are as follows:

New Plant:

Cost price $-$ R$3750000$

Carrying amount $-31$ December $2020-$ R$0$

Tax base $-31$ December $2020-$ R$0$

Depreciation method $-$ Straight$-$line

Useful life $-5$ years

Residual value $($only for accounting purposes$)-$ R$250000$

Tax Wear & Tear allowance $($Yr$1/2/3)-50/25/25\%$

Old Plant:

Cost price $-$ R$1875000$

Carrying amount $-31$ December $2020-$ R$1175000$

Tax base $-31$ December $2020-$ R$1125000$

Depreciation method $-$ Straight$-$line

Useful life $-5$ years

Residual value $($only for accounting purposes$)-$ R$125000$

Tax Wear & Tear allowance $-20\%$ p$.$a$.$

The old plant was sold for R$1000000.$

$3.)$ The following items were included in calculation of the profit before tax:

$2022$:

Dividend received $-$ R$62500$

Fines paid $-$ R$3000$

Legal fees paid $-$ R$30000$

$2021$:

Dividend received $-$ R$37500$

Fines paid $-$ R$0$

Legal fees paid $-$ R$5000$

R$25000(2021-$ Rnil$)$ of the legal fees of $2022$ were tax deductible.

$4.)$ Assume a standard tax rate for normal company tax for all years as $28\%.$

$5.)$ The balance of the deferred tax account on $31$ December $2020$ only related to the manufacturing plant.

$6.)$ VAT and Dividend Tax may be ignored.

REQUIRED:

a$)$ Calculate the deferred tax liability$/($asset$)$ of Supa$-$Build $($Pty$)$ Ltd on $31$ December $2021$ and $2022.$

b$)$ Calculate deferred tax expense for the $2021$ and $2022$ financial years.

Hint: first prepare the normal tax payable calculation for Supa$-$Build $($Pty$)$ Ltd for the reporting periods ended $31$ December $2021$ and Use the comprehensive approach according to IAS $12($AC $102)$ Income taxes.