Development costs have been capitalized on the statement
1. Development costs have been capitalized on the statement of financial position and are being amortized to profit or loss over three years, but deducted as an expense for tax purposes as incurred.
2. An entity borrows money and pays a transaction fee on the amount borrowed. The transaction costs are added to the debt and amortized using the effective interest method for financial reporting purposes, although they were deducted when they were paid for tax purposes.
3. Pension expense is charged to profit or loss each period although tax legislation allows entities to deduct only the contributions to the pension trustee to be deducted for tax purposes. Expenses have always exceeded the contributions.
4. Investment property is measured according to the revaluation model for financial reporting purpose, resulting in valuations in excess of original cost. This method is not permitted for tax purposes.
For each situation described above, indicate whether the company has a deductible or a taxable temporary difference and whether it will result in the recognition of a deferred tax asset or a tax liability.