Apple Ltds profit before tax for the year ended 30 June 2021 was $75,000. Included in this profit are the following items of income and expense:

Annual leave expense	$3,000
Bad debts expense	6,000
Depreciation expense - buildings (non-deductible)	800
Depreciation expense - plant	5,000
Entertainment costs (non-deductible)	1,800
Long service leave expense	1,500
Rent revenue	3,000
Royalty revenue (exempt)	4,000

The assets and liabilities at 30 June 2021 and 30 June 2020 were:

	2021	2020
Assets
Cash	8,000	8,500
Accounts receivable	50,000	48,000
Allowance for doubtful debts	(5,500)	(4,000)
Inventory	17,000	15,500
Office supplies	2,500	2,200
Plant	50,000	50,000
Accumulated depreciation plant	(26,000)	(21,000)
Buildings	30,000	30,000
Accumulated depreciation buildings	(14,800)	(14,000)
Goodwill (net)	7,000	7,000
Deferred tax asset	?	4,050
Liabilities
Accounts payable	29,000	26,000
Provision for long service leave	6,000	4,500
Provision for annual leave	4,000	3,000
Rent received in advance	2,500	2,000
Deferred tax liability	?	5,150

Additional information:

1. The tax rate is 30%.
2. Buildings are depreciated in the accounting records but no deduction is allowed for tax purposes.
3. Accumulated depreciation of plant for tax purposes was $31,500 at 30 June 2020, and depreciation for tax purposes for the year ended 30 June 2021 amounted to $7,500.
4. The deferred tax asset (DTA) balance at 30 June 2020 comprised: i) DTAs relating to temporary differences: $3,150 ii) DTAs relating to carried forward tax losses: $2,000
5. No journal entries related to deferred tax have been recorded for the year ended 2021. Assume the tax balances at 30 June 2020 are correct.

Required:

1. Prepare the current tax worksheet to calculate the current tax liability for the year ended 30 June 2021 (show all working, including t-accounts where appropriate). (15 marks)
2. Prepare the deferred tax worksheet to calculate the deferred tax asset and liability balances and adjustments for the year ended 30 June 2021. Include all accounts and net balances where appropriate. (13 marks)
3. Prepare the journal entries to recognise the current tax liability, deferred tax assets, and liabilities at 30 June 2021. (2 marks)

   Apple Ltds profit before tax for the year ended 30 June 2021 was $75,000. Included in this profit are the following items of income and expense:

   Annual leave expense	$3,000
   Bad debts expense	6,000
   Depreciation expense - buildings (non-deductible)	800
   Depreciation expense - plant	5,000
   Entertainment costs (non-deductible)	1,800
   Long service leave expense	1,500
   Rent revenue	3,000
   Royalty revenue (exempt)	4,000

   The assets and liabilities at 30 June 2021 and 30 June 2020 were:

   	2021	2020
   Assets
   Cash	8,000	8,500
   Accounts receivable	50,000	48,000
   Allowance for doubtful debts	(5,500)	(4,000)
   Inventory	17,000	15,500
   Office supplies	2,500	2,200
   Plant	50,000	50,000
   Accumulated depreciation plant	(26,000)	(21,000)
   Buildings	30,000	30,000
   Accumulated depreciation buildings	(14,800)	(14,000)
   Goodwill (net)	7,000	7,000
   Deferred tax asset	?	4,050
   Liabilities
   Accounts payable	29,000	26,000
   Provision for long service leave	6,000	4,500
   Provision for annual leave	4,000	3,000
   Rent received in advance	2,500	2,000
   Deferred tax liability	?	5,150

   Additional information:

4. The tax rate is 30%.
5. Buildings are depreciated in the accounting records but no deduction is allowed for tax purposes.
6. Accumulated depreciation of plant for tax purposes was $31,500 at 30 June 2020, and depreciation for tax purposes for the year ended 30 June 2021 amounted to $7,500.
7. The deferred tax asset (DTA) balance at 30 June 2020 comprised: i) DTAs relating to temporary differences: $3,150 ii) DTAs relating to carried forward tax losses: $2,000
8. No journal entries related to deferred tax have been recorded for the year ended 2021. Assume the tax balances at 30 June 2020 are correct. Required: Prepare the current tax worksheet to calculate the current tax liability for the year ended 30 June 2021 (show all working, including t-accounts where appropriate). (15 marks)Prepare the deferred tax worksheet to calculate the deferred tax asset and liability balances and adjustments for the year ended 30 June 2021.Include all accounts and net balances where appropriate. (13 marks)Prepare the journal entries to recognise the current tax liability, deferred tax assets, and liabilities at 30 June 2021. (2 marks)