AAA Ltd commences operations on 1 July 2018 and presents its first statement of profit and loss and other comprehensive income and first statement of financial position on 30 June 2019. The statements are prepared before considering taxation. The following information is available:

Statement of Profit or Loss and other comprehensive income for the year ended 30 June 2019
Gross Profit			$ 730,000.00
Expenses
Administration expenses		$ 80,000.00
Salaries		$ 200,000.00
Long-service Leave		$ 20,000.00
Warranty expenses		$ 30,000.00
Depreciation expense - plant		$ 80,000.00
Insurance		$ 20,000.00	$ 430,000.00
Accounting profit before tax			$ 300,000.00
Other comprehensive income			$ Nil
Assets and liabilities as disclosed in the statement of financial positions as at 30 June 2019
Assets
Cash			$ 20,000.00
Inventory			$ 100,000.00
Accounts receivable			$ 100,000.00
Prepaid Insurance			$ 10,000.00
Plant - cost	$ 400,000.00
Less: Accumulated depreciation	$ 80,000.00		$ 320,000.00
Total assets			$ 550,000.00
Liabilities
Accounts payable			$ 80,000.00
Provision for warranty expenses			$ 20,000.00
Loan payable			$ 200,000.00
Provision for long service leave expenses			$ 20,000.00
Total liabilities			$ 320,000.00
Net assets			$ 230,000.00

Other information

All administration and salaries expenses incurred have been paid as at year end

None of the long service leave expense has actually been paid.

Warranty expenses were accrued, and at year end, actual payments of $10 000 have been made (leaving an accrued balance of $20 000).

Insurance was initially prepaid to the amount of $30 000. At year end, the unused component of the prepaid insurance amounted to $10 000.

Amounts received from sales, including those on credit terms, are taxed at the time of sale is made.

The plant is depreciated over five years for accounting purposes, but over four years for taxation purposes.

The tax rate is 30 per cent

TASK:

A. Compute the following for AAA Ltd as at 30 June 2019:

Taxable Income

Deductible Temporary Differences

Taxable Temporary Differences

Current Tax Liability

Income Tax Expense

B. Prepare journal entries for AAA Ltd as at 30 June 2019 to account for tax in accordance with AASB 112