Art House Ltd is reviewing its deferred tax for the year.

1. The company purchased a printing machine at the beginning of the year for $100 000. It has an accounting annual straight-line depreciation rate of 20%. The tax depreciation rate is 30% straight-line.

2. The companys provision for long-service leave at the start and end of the financial year were $160 000 and $155 000 respectively. During the year $20 000 was paid to a long-standing employee as long-service leave.

3. On 1st July this year the company spent $50 000 on development expenditure which was capitalised as an asset and is amortised on a straight-line basis over 5 years. The company is not entitled to any additional deduction above the 100% of costs incurred for tax purposes.

4. The opening and closing balances on the allowance for doubtful debts account were $5,000 and $8000 respectively. During the year $10 000 was written off as being uncollectable. The opening and closing balances on the accounts receivable account were $62 000 and $60 000 respectively.

5. The company has interest receivable of $10 000 at the end of the year. No interest was receivable at the beginning of the year. Interest income is included in taxable profit only when received.

6. The company revalued plant at the beginning of the year from $400 000 to $500 000. The plant is being depreciated at the rate of 10% per year for accounting purposes and 5% per year for tax purposes.

Required In each of the above situations prepare the end-of-period adjustment JOURNAL ENTRIES to account for income tax on the initial appearance or reversal of any temporary differences. A deferred tax worksheet is NOT required. EXPLAIN in each case why particular accounts are affected. Show your workings