ABC Corp began business on 1 October 2017 they have pre-tax profits for two financial years: on 2017-18 $1,240,000 and 2018-19 $2,560,000 The applicable corporate tax rate is 30%. The following items give rise to the only differences between its tax calculated on these pre-tax profits and its income for tax assessment purposes: On 1 April 2018, the company received $240,000 in rent from another organisation to whom it leased premises. Of this amount, $80,000 was for rent for the period 1 April 2018 to 30 September 2018, and the rest was for the period 1 October 2018 to 30 September 2019. Under the tax laws, the company was obliged to include the entire amount received on 1 April 2018 in its 2017-18 income for tax assessment purposes. The company incurred expenses of $10,000 and $15,000 for entertainment expenses 2017-18 and 2018-19 respectively. These expenses are non-deductible for tax purposes. In 2017-18 and 2018-19, in closing its accounts, the company accrued long service leave in the amounts of $40,000 and $50,000. Payment of this accrual is provided for in the company's cash flow forecasts for each of the three years from 1 October 2019. For tax purposes, long service leave is deductible as it is paid. Answer the ff. 1. How much is taxable income for the year 2017-18 and 2018-19 2. Prepare the journal entry to record the collection of rent on 1 April 2018 for both book and tax purposes in relevant years. 3.Prepare all the entries pertaining to long service leave for both book and tax purposes at the end of the relevant years. 4. Calculate the balances of the deferred tax asset account and deferred tax liability account as at 30 September 2018 and 30 September 2019. ABC Corp began business on 1 October 2017 they have pre-tax profits for two financial years: on 2017-18 $1,240,000 and 2018-19 $2,560,000 The applicable corporate tax rate is 30%. The following items give rise to the only differences between its tax calculated on these pre-tax profits and its income for tax assessment purposes: On 1 April 2018, the company received $240,000 in rent from another organisation to whom it leased premises. Of this amount, $80,000 was for rent for the period 1 April 2018 to 30 September 2018, and the rest was for the period 1 October 2018 to 30 September 2019. Under the tax laws, the company was obliged to include the entire amount received on 1 April 2018 in its 2017-18 income for tax assessment purposes. The company incurred expenses of $10,000 and $15,000 for entertainment expenses 2017-18 and 2018-19 respectively. These expenses are non-deductible for tax purposes. In 2017-18 and 2018-19, in closing its accounts, the company accrued long service leave in the amounts of $40,000 and $50,000. Payment of this accrual is provided for in the company's cash flow forecasts for each of the three years from 1 October 2019. For tax purposes, long service leave is deductible as it is paid. Answer the ff. 1. How much is taxable income for the year 2017-18 and 2018-19 2. Prepare the journal entry to record the collection of rent on 1 April 2018 for both book and tax purposes in relevant years. 3.Prepare all the entries pertaining to long service leave for both book and tax purposes at the end of the relevant years. 4. Calculate the balances of the deferred tax asset account and deferred tax liability account as at 30 September 2018 and 30 September 2019