Additional information: - DTA’s relating to temporary differences: $11,190 - DTA
ID: 2536164 • Letter: A
Question
Additional information:
- DTA’s relating to temporary differences: $11,190
- DTA’s relating to carried forward tax losses: $6,000
Required:
i) Determine the balance of any current tax liability and deferred tax assets and liabilities as at 30 June 2017, in accordance with AASB 112. Use appropriate worksheets and show all necessary workings.
ii) Prepare the journal entries to record the current tax liability and movements in deferred tax assets and deferred tax liabilities.
$ Royalties (exempt income) 15,000 CR Interest revenue 16,000 CR Annual leave expense 9,000 DR Doubtful debts expense 3,800 DR Depreciation - plant (15% per year, straight-line) 47,250 DR Depreciation - motor vehicles (20% per year, straight-line) 20,000 DR Insurance expense 14,000 DR Rent expense 42,000 DR Warranty expense 5,600 DR Entertainment expense (not tax deductible) 4,000 DRExplanation / Answer
Workings has been given for your Understanding.
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Particulars Amount Workings Profit before Tax 235,000.00 Royalties (exempt income) (15,000.00) Interest revenue (1,000.00) (-2000+1000) Annual leave expense 4,600.00 (15600-11000) Doubtful debts expense 1,800.00 4000-2200 Depreciation - plant (15% per year, straight-line) (15,750.00) (315000*20%-47250) Depreciation - motor vehicles (20% per year, straight-line) 5,000.00 (100000*15%-20000) Insurance expense (3,000.00) (4000-1000) Warranty expense 2,600.00 (14200-11600) Entertainment expense (not tax deductible) 4,000.00 Tax able Income 218,250.00 Less: Lat Year Loss Setoff 20,000.00 Net Taxable Income 198,250.00 Tax @ 30% 59,475.00Related Questions
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