At 3 0 June 2 0 2 3 Maximum Ltd provided the following information from its balance sheet about its assets and liabilities Assets ( $ 0 0 0 ) Computers at cost 3 0 0 Accumulated depreciation ( 6 0 ) Accounts receivable 1 0 0 Allowance for doubtful debts ( 1 0 ) Liabilities Provision for warranty costs 3 0 Provision for employee benefits ( LSL ) 2 0 Maximum Ltd depreciates computers over five years in its accounting records but over three years for tax purposes The straight line method is used No amounts were paid for long service leave or warranty claims during the year The following information is available for the following year, the year ending 3 0 June 2 0 2 4 Statement of profit or loss for Maximum Ltd for the year ending 3 0 June 2 0 2 4 $ 0 0 0 Sales 4 0 0 0 Cost of goods sold ( 1 8 0 0 ) Depreciation expense ( 6 0 ) Warranty expense ( 9 0 ) Bad and doubtful debts expense ( 2 5 ) Other expenses ( 1 3 7 5 ) Profit before tax 6 5 0 During the year, Maximum Ltd wrote off bad debts amounting to $ 1 5 0 0 0 Warranty costs of $ 7 0 0 0 0 were paid during the year No amounts were paid for long service leave during the year The following information is extracted from the statement of financial position at 3 0 June 2 0 2 4 Assets $ 0 0 0 Accounts receivable 1 2 0 Allowance for doubtful debts ( 2 0 ) Liabilities Provision for warranty costs 5 0 Provision for employee benefits ( LSL ) 3 0 There was no acquisition of plant and equipment during the year The tax rate as at 3 0 June 2 0 2 3 and 3 0 June 2 0 2 4 was 3 0 per cent Required Calculation Questions 1 Calculate the amount of each of Maximum Ltd s temporary differences, if any, at 3 0 June 2 0 2 3 , and state whether it is deductible or taxable Present your answer using the following table format ( show workings where relevant ) Account Carrying amount Tax base Temporary Difference 2 What is the balance of the deferred tax liability and deferred tax asset as at 3 0 June 2 0 2 3 3 Complete a worksheet showing the deferred tax balances for the year ended 3 0 June 2 0 2 4 Hint the opening balances calculated for the previous year have to be deducted 4 Complete the relevant general journal entries to record current tax and deferred tax for the year ending 3 0 June 2 0 2 4

Question

At 3 0 June 2 0 2 3 Maximum Ltd provided the following information from its balance sheet about its assets and liabilities Assets ( $ 0 0 0 ) Computers at cost 3 0 0 Accumulated depreciation ( 6 0 ) Accounts receivable 1 0 0 Allowance for doubtful debts ( 1 0 ) Liabilities Provision for warranty costs 3 0 Provision for employee benefits ( LSL ) 2 0 Maximum Ltd depreciates computers over five years in its accounting records but over three years for tax purposes  The straight   line method is used  No amounts were paid for long service leave or warranty claims during the year  The following information is available for the following year, the year ending 3 0 June 2 0 2 4   Statement of profit or loss for Maximum Ltd for the year ending 3 0 June 2 0 2 4 $ 0 0 0 Sales 4 0 0 0 Cost of goods sold ( 1 8 0 0 ) Depreciation expense ( 6 0 ) Warranty expense ( 9 0 ) Bad and doubtful debts expense ( 2 5 ) Other expenses ( 1 3 7 5 ) Profit before tax 6 5 0 During the year, Maximum Ltd wrote off bad debts amounting to $ 1 5 0 0 0   Warranty costs of $ 7 0 0 0 0 were paid during the year  No amounts were paid for long service leave during the year  The following information is extracted from the statement of financial position at 3 0 June 2 0 2 4   Assets $ 0 0 0 Accounts receivable 1 2 0 Allowance for doubtful debts ( 2 0 ) Liabilities Provision for warranty costs 5 0 Provision for employee benefits ( LSL ) 3 0 There was no acquisition of plant and equipment during the year  The tax rate as at 3 0 June 2 0 2 3 and 3 0 June 2 0 2 4 was 3 0 per cent  Required Calculation Questions 1   Calculate the amount of each of Maximum Ltd s temporary differences, if any, at 3 0 June 2 0 2 3 , and state whether it is deductible or taxable  Present your answer using the following table format ( show workings where relevant )   Account Carrying amount Tax base Temporary Difference 2   What is the balance of the deferred tax liability and deferred tax asset as at 3 0 June 2 0 2 3   3   Complete a worksheet showing the deferred tax balances for the year ended 3 0 June 2 0 2 4   Hint  the opening balances calculated for the previous year have to be deducted  4   Complete the relevant general journal entries to record current tax and deferred tax for the year ending 3 0 June 2 0 2 4

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At 3 0 June 2 0 2 3 Maximum Ltd provided the following information from its balance sheet about its assets and liabilities Assets (

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