Additional Information:
a)	Rent revenue is tax assessable when it is received in cash
b)	Government grant is not tax assessable
c)	Doubtful debts are tax deductible when the company actually incurs bad debts/write offs
d)	For accounting purposes, plant is depreciated using the straight line method at a rate of:			10%	per annum
	For tax purposes, however, plant is depreciated at a rate of:			15%	per annum
e)	Depreciation of buildings and entertainment expense are not allowed as tax deductions
f)	Employee entitlements including annual leave are tax deductible when they are paid in cash to the employees
g)	Insurance expense is tax deductible when it is paid in cash
h)	Warranty expense is tax deductible when it is paid in cash
i)	Aggregated turnover for the years ended 30 June 2019 and 2020 is in excess of $25 million and it is expected that turnover will exceed $50 million in the year ended 30 June 2021
Required:
	Using Sheet 2 ("Calculating Taxable income"), calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30th June 2020. Prepare a journal entry to recognise the current tax liability/tax loss. (18 marks)
)	Using Sheet 3 ("Calculating DTA_DTL 2020"), calculate the Deferred Tax Asset and Deferred Tax Liability balances as at 30th June 2020 - show all relevant workings. Prepare the deferred tax journal entry for the year ended 30th June 2020. Note that you are NOT required to prepare a journal entry to offset the Deferred Tax Asset and Deferred Tax Liability balances. ()
3)	Assume that by 1 December 2020 there was a change in tax rate	from:		30%
		to:		27.50%
	Using Sheet 4 ("Change in Tax Rate") briefly discuss the accounting treatment under accounting standard AASB112 "Income Taxes" for the Deferred Tax Asset and Deferred Tax Liability balances as at 1 December 2020 given that the company may now be in a lower tax threshold for the 2020-2021 financial year (maximum 100 words in the space provided).
	Should you believe an accounting change is necessary, prepare the journal entry to record the effect of the change in tax rate. ()
	Note that the opening balances of DTA and DTL for the year ended 30 June 2021 are the closing balances for the year ended 30 June 2020 from part (b)
	In each of the four sheets, you can only enter data (text or numbers) in cells shaded in yellow.
	All marks will be awarded to numbers only, except for the discussion in Part (c).

 

Background Information: As reported in the statement of comprehensive income of Wonderland Ltd (a manufacture company) for the year ended 30 June 2020: The profit before tax amounted to: and included the following revenue and expense items: Rent revenue Government grant received Doubtful debts expense Depreciation (Plant) Depreciation (Buildings) Warranty expense Annual leave expense Insurance expense Entertainment expense $4,300,000 $134,000 $241,000 $26,000 $174,600 $43,000 $120,000 $80,000 $40,000 $67,100