Calculation of current tax liability and adjusting journal entry   LO4 The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Mackay Ltd for the year ended 30 June 2021, amounted to $60 000, including the following revenue and expense items. Rent revenue $3 000 Bad debts expense 6 000 Depreciation expense — plant 5 000 Annual leave expense 3 000 Entertainment costs (non‐deductible) 1 800 Depreciation expense — buildings (non‐deductible) 800 The statement of financial position of the company at 30 June 2021 showed the following assets and liabilities. 2021 2020 Assets Cash $ 8 000 $ 8 500 Inventories 17 000 15 500 Accounts receivables 50 000 48 000 Allowance for doubtful debts (5 500) (4 000) Office supplies 2 500 2 200 Plant 50 000 50 000 Accumulated depreciation — plant (26 000) (21 000) Buildings 30 000 30 000 Accumulated depreciation — buildings (14 800) (14 000) Goodwill (net) 7 000 7 000 Deferred tax asset ? 4 050 Liabilities Accounts payable 29 000 26 000 Provision for long service leave 6 000 4 500 Provision for annual leave 4 000 3 000 Rent received in advance 2 500 2 000 Deferred tax liability ? 3 150 Additional information • Accumulated depreciation of plant for tax purposes was $31 500 at 30 June 2020, and depreciation for tax purposes for the year ended 30 June 2021 amounted to $7500. • The tax rate is 30%. Required Prepare a current tax worksheet and the journal entry to recognise the company’s current tax liability as at 30 June 2021.