Answer Question part 2 and 3 only....Part one is already answered........With Thanks
AF314 Corporate Accounting Flexi-School - 2019 Individual Assignment (20%) 1. Due Date: Monday 6th January (by 4pm) at the SOAF office. Penalty at 10% per day. 2. Must be word-processed, not hand written, word size 12 with 'Times new roman' font type and double-spacing. 3. Each answer must be clearly marked by the designated question to which it corresponds. Please list any references (books, articles, web-based material) you use at the end of your assignment in alphabetical order, using the referencing style seen in academic articles (i.e. with in text references and bibliography, as in the Harvard referencing style). Requirements: Question 1 The following data are taken from the trial balance of Bula Island Limited on 30 June 2018 with selected comparative information provided for 30 June 2017 2017 Sales revenue Interest revenue Royalties revenue Dividend revenue Depreciation-building Depreciation-plant Depreciation-equipment Research and development expenditure Cost of goods sold Warranty expense Wages and salaries expense Long service leave expense Interest expense Rates and taxes on property Doubtful debts expense Accounts receivable Estimated uncollectible debts Interest receivable Royalties receivable Land (at cost) Buildings Accumulated depreciation-buildings 2018 9,245,000 850,000 1,450,000 150,000 147,500 262,500 75,000 | 1,650,000 4,005,000 195,000 3,475,000 235,000 305,000 145,500 142,500 675,000 182,000 300,000 920,000 2,500,000 3,200,000 442,500 375,000 95,000 275,000 745,000 2,500,000 3,200,000 295,000 Plant Accumulated depreciation-Plant Equipment Accumulated depreciation-equipment Wages and salaries payable Provision for long service leave Provision for warranty claims Interest payable | 2,100,000 787,500 750,000 225,000 345,000 355,000 130,000 100,000 2,100,000 525,000 750,000 150,000 265,000 245,000 115,000 100,000 Additional Information 1. All depreciable assets were acquired on 1 July 2015. For financial reporting purposes, depreciation is recognised on a straight line basis, over 20 years for buildings (estimated residual value $250,000), eight years for plant and 10 years for equipment. For tax purposes, straight line depreciation is applied over 40, 10 and eight years respectively. 2. After reviewing all relevant information, the directors determined that, at 30 June 2018, the plant was impaired by $250,000 (this is not reflected in the amounts presented in the trial balance). 3. On 30 June 2018, after careful consideration, the directors of Bula Island Ltd decided to adopt the fair value model for land, the fair value of land on 1 July 2017 was $3,500,000 and on 30 June 2018 was $3,250,000. 4. The research and development expenditure qualifies for the additional 25% taxation deduction. 5. The tax rate at 30 June 2017 was 30%. On 15 June 2018, legislation was enacted decreasing the tax rate to 25% effective 1 July 2018. Required: 1. Calculate the amount of current tax expense. Use an appropriately labelled table for this task. 2. Prepare a deferred tax worksheet to calculate the amounts for deferred tax assets and deferred tax liabilities for the reporting period 30 June 2018. Use an appropriately labelled table for this task. 3. Prepare journal entries for the income tax expense related items for the reporting period 30 June 2018 AF314 Corporate Accounting Flexi-School - 2019 Individual Assignment (20%) 1. Due Date: Monday 6th January (by 4pm) at the SOAF office. Penalty at 10% per day. 2. Must be word-processed, not hand written, word size 12 with 'Times new roman' font type and double-spacing. 3. Each answer must be clearly marked by the designated question to which it corresponds. Please list any references (books, articles, web-based material) you use at the end of your assignment in alphabetical order, using the referencing style seen in academic articles (i.e. with in text references and bibliography, as in the Harvard referencing style). Requirements: Question 1 The following data are taken from the trial balance of Bula Island Limited on 30 June 2018 with selected comparative information provided for 30 June 2017 2017 Sales revenue Interest revenue Royalties revenue Dividend revenue Depreciation-building Depreciation-plant Depreciation-equipment Research and development expenditure Cost of goods sold Warranty expense Wages and salaries expense Long service leave expense Interest expense Rates and taxes on property Doubtful debts expense Accounts receivable Estimated uncollectible debts Interest receivable Royalties receivable Land (at cost) Buildings Accumulated depreciation-buildings 2018 9,245,000 850,000 1,450,000 150,000 147,500 262,500 75,000 | 1,650,000 4,005,000 195,000 3,475,000 235,000 305,000 145,500 142,500 675,000 182,000 300,000 920,000 2,500,000 3,200,000 442,500 375,000 95,000 275,000 745,000 2,500,000 3,200,000 295,000 Plant Accumulated depreciation-Plant Equipment Accumulated depreciation-equipment Wages and salaries payable Provision for long service leave Provision for warranty claims Interest payable | 2,100,000 787,500 750,000 225,000 345,000 355,000 130,000 100,000 2,100,000 525,000 750,000 150,000 265,000 245,000 115,000 100,000 Additional Information 1. All depreciable assets were acquired on 1 July 2015. For financial reporting purposes, depreciation is recognised on a straight line basis, over 20 years for buildings (estimated residual value $250,000), eight years for plant and 10 years for equipment. For tax purposes, straight line depreciation is applied over 40, 10 and eight years respectively. 2. After reviewing all relevant information, the directors determined that, at 30 June 2018, the plant was impaired by $250,000 (this is not reflected in the amounts presented in the trial balance). 3. On 30 June 2018, after careful consideration, the directors of Bula Island Ltd decided to adopt the fair value model for land, the fair value of land on 1 July 2017 was $3,500,000 and on 30 June 2018 was $3,250,000. 4. The research and development expenditure qualifies for the additional 25% taxation deduction. 5. The tax rate at 30 June 2017 was 30%. On 15 June 2018, legislation was enacted decreasing the tax rate to 25% effective 1 July 2018. Required: 1. Calculate the amount of current tax expense. Use an appropriately labelled table for this task. 2. Prepare a deferred tax worksheet to calculate the amounts for deferred tax assets and deferred tax liabilities for the reporting period 30 June 2018. Use an appropriately labelled table for this task. 3. Prepare journal entries for the income tax expense related items for the reporting period 30 June 2018
