On 1 January 2012,William Bay Ltd Purchased a Machine for $100,000.The

On 1 January 2012,William Bay Ltd purchased a machine for $100,000.The entity adopts a straight-line depreciation method and uses 10% and 15% as depreciation rate and tax rate,respectively.The salvage value is zero and the tax rate is 30%. At 31 December 2012,which of the following statements is correct with respect to this transaction only that is in accordance with AASB 112 "Income Taxes"?

A) There is a deductible temporary difference of $5,000.
B) There is a deductible temporary difference of $1,500.
C) There is a taxable temporary difference of $5,000.
D) There is a taxable temporary difference of $1,500.
E) The deferred tax liability is $5,000.