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Accounting profit for JuJu Limited for the year ended 30 June 2020 was $100,000 included in the accounting profit was insurance expense of $8,000. The
Accounting profit for JuJu Limited for the year ended 30 June 2020 was $100,000 included in the accounting profit was insurance expense of $8,000. The balance of the Prepaid Insurance account at 30 June 2019 was $25,000 and at 30 June 2020 was $23,000. To calculate the taxable profit for the year, a tax deduction is granted for insurance when the premiums are paid. The amount of insurance premiums paid for the year ended 30 June 2020 were: $10,000 $8,000 $6,000 $2,000
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