5 Accounting for Income Tax 11 Points The following information is relevant to questions 5.1, 5.2, and 5.3. The accounting profit before tax of Carlton Ltd for the year ended 30 June 2022 is $60 000. The draft statement of financial position as at 30 June 2022 includes the following assets and liabilities. 2022 2021 Cash $8000 $6500 Accounts receivable 41000 35000 Allowance for doubtful debts (2000) (1700) Inventories 67000 48000 Machinery 200000 200000 Accumulated depreciation-machinery (150000) (100000) Land Deferred tax asset Accounts payable Deferred tax liability 120 000 100 000 ? 5000 71000 ? 60000 0 Additional information For the year ended 30 June 2022, Carlton Ltd incurs doubtful debts expense of $1000. For accounting purpose, the machinery is depreciated over 4 years using straight-line depreciation with residual value of zero. For tax purpose, the machinery is depreciated over 5 years using straight-line depreciation with residual value of zero. The tax rate is 30%. The company has $8 000 in tax losses carried forward from the previous year. A deferred tax asset was recognised for these losses. Taxation legislation allows such losses to be offset against future taxable profit. Land is revalued up by $20 000 for the year ended 30 June 2022. 5.1 Prepare the current tax worksheet for the year ended 30 June 2022 and calculate the current tax liability. Please upload your answer in PDF: Please select file(s) Select file(s) 5.2 Complete the following deferred tax worksheet for the year ended 30 June 2022. Carrying Amount FTA FDA Tax Base Deductible Temporary Differences Taxable Temporary Differences Account receivable Machinery Land Please upload your answer in PDF: Please select file(s) Select file(s) 5.3 List the journal entries that Carlton Ltd needs to make to recognise the current tax and adjust deferred tax accounts as at 30 June 2022. Please upload your answer in PDF: Please select file(s) Select file(s)