Current and deferred tax    LO4, 5 The accounting profit before tax for the year ended 30 June 2019 for Quamby Ltd amounted to $18 500 and included: Depreciation expense — motor vehicle (25% p.a., straight‐line) $ 4 500 Depreciation expense — equipment (20% p.a., straight‐line) 20 000 Rent revenue 16 000 Royalty revenue (non‐taxable) 5 000 Doubtful debts expense 2 300 Entertainment expense (non‐deductible) 1 500 Annual leave expense 5 000 Gain on sale of equipment 1 000 The draft statement of financial position at 30 June 2019 contained the following assets and liabilities. Assets Cash $ 11 500 $ 9 500 Accounts receivables 12 000 14 000 Allowance for doubtful debts (3 000) (2 500) Inventories 19 000 21 500 Rent receivable 2 800 2 400 Motor vehicle 18 000 18 000 Accumulated depreciation — motor vehicle (15 750) (11 250) Equipment 100 000 130 000 Accumulated depreciation — equipment (60 000) (52 000) Deferred tax asset ? 6 450 Liabilities Accounts payable 15 655 21 500 Provision for annual leave 4 500 6 000 Current tax liability ? 7 600 Deferred tax liability ? 2 745 Additional information • The motor vehicle is fully depreciated for tax purposes. • The company claims tax depreciation on equipment at the rate of 15% p.a. The sale of equipment on which a gain was recognised (see above) was the only movement in the equipment account during the year and took place on 1 July 2018. • The company tax rate is 30%. Required 1. Prepare the current tax worksheet and the journal entry to recognise the current tax as at 30 June 2019. 2. Prepare the deferred tax worksheet and any necessary journal entries to adjust deferred tax accounts.