a) Prepare a Reconciliation Statement to determine taxable income

b) Complete the Deferred Tax Worksheet Below

c) Prepare the appropriate journal entries to adjust the deferred tax accounts.

1 2 3 Assets 4 Cash Statement of financial position $ 65,000 5 Inventory 335,000 6 Accounts receivable 235,000 7 Prepaid insurance 32,700 8 Plant - net 1,116,000 9 Marketable Securities 120,000 10 Land 950,000 11 2,853,700 12 Liabilities 13 Account payable 334,000 14 Loan payable 563,500 15 Provision for long service leave 58,600 16 Prepaid rent income 28,500 17 984,600 18 Net asset 1,869,100 19 Temporary differences at period end 20 less Prior period amounts 21 Movement for the period 22 Tax effected at 28.5% 23 Tax on taxable income, 28.5% x $497000 24 Income tax adjustments 25 Tax base Deductible Taxable temporary temporary differences differences Income tax Revaluation Current tax expense Surplus payable $ $ $ $ $ $