You are the accountant of Brand New Friend Ltd, a reporting entity with a year end of 30 June 2017. You are currently preparing the tax information for inclusion in the financial statements. An extract from the statement of profit or loss and other comprehensive income is as follows:

Additional information

(a) Exempt income is not subject to tax.

(b) Interest is assessable on receipt and deductible when paid. Interest receivable at 30 June 2017 is $25 000 (2016: $30 000). Interest payable at 30 June 2017 is $1000 (2016: $6000).

(c) The company raised an accrual liability of $35 000 for work not performed by 30 June 2017 (2016: $30 000). Fees for audit work are not deductible unless the audit work has been performed.

(d) Rent revenue relates to a contract where the annual rent is received in advance. The unearned revenue liability at 30 June 2017 is $20 000 (2016: $15 000). Rent is assessable when received.

(e) The bad debts expense relates to an account that has been written off.

(f) Property, plant and equipment is as follows:

The company?s buildings do not qualify for tax deductions and are not subject to capital gains tax.

Tax depreciation for 30 June 2017 is $70 000. The tax written down value of plant and equipment at 30 June 2017 is $220 000 (2016: $90 000).

(g) Entertainment expenses are not deductible.

(g) Legal expenses include $50 000 related to capital transactions that are not deductible.

(h) Employee expenses for the year include $50 000 for annual leave and $10 000 for long-service leave. The provision for employee benefits at 30 June 2017 is $180 000 (2016: $170 000).

(i) The deferred tax balances at 30 June 2016 are: deferred tax liability $13 500 and deferred tax asset $66 300.

(j) The company tax rate is 30%.

Complete the current and deferred tax worksheets of Brand New Friend Ltd for 30 June 2017 and use the worksheets to prepare the tax entries for the year.

Profit before tax Included in the profit: Employee expenses Legal expenses Exempt income Interest revenue Audit fees expense Rent revenue Interest expense Bad debts expense Depreciation expense - plant and equipment Depreciation expense - buildings Entertainment expenses $ 500 000 550 000 125 000 75 000 30 000 80 000 20 000 20 000 30 000 52 500 10 000 5 000 Property, plant and equipment Buildings at cost Accumulated depreciation - buildings Plant and equipment at cost Accumulated depreciation equipment 30 June 2017 $ 500 000 (50 000) 450 000 350 000 plant and(97 500) 252 500 $ 702 500 30 June 2016 $ 500 000 (40 000) 460 000 150 000 (45 000) 105 000 $ 565 000