At $30$ June $2023$ Maximum Ltd provided the following information from its balance sheet about its assets and liabilities

Assets $($$$000)$

Computers at cost $300$

Accumulated depreciation $(60)$

Accounts receivable $100$

Allowance for doubtful debts $(10)$

Liabilities

Provision for warranty costs $30$

Provision for employee benefits $($LSL$)20$

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 serviceleave or warranty claims during the year.

The following information is available for the following year, the year ending $30$ June $2024.$

Statement of profit or loss for Maximum Ltd for the year ending $30$ June $2024$ $$000$

Sales $4000$

Cost of goods sold $(1800)$

Depreciation expense $(60)$

Warranty expense $(90)$

Bad and doubtful debts expense $(25)$

Other expenses $(1375)$

Profit before tax $650$

During the year, Maximum Ltd wrote off bad debts amounting to $$15000.$ Warranty costs of $$70000$ were paid during the year. No amounts were paid for long serviceleave during the year. The following information is extracted from the statement of financial position at $30$ June $2024$:

Assets $$000$

Accounts receivable $120$

Allowance for doubtful debts $(20)$

Liabilities

Provision for warranty costs $50$

Provision for employee benefits $($LSL$)30$

There was no acquisition of plant and equipment during the year.

The tax rate as at $30$ June $2023$ and $30$ June $2024$ was $30$ per cent.

Required $$ Calculation Questions

$1.$ Calculate the carrying amount and the tax base of the following assets and liabilities at $30$ June $2024$ using the following table $($for each part, briefly explain, either showing your workings or providing a written explanation, how you determined the tax base$)$:

Account Carrying amount Taxable amount Deductible amount Tax base

i$.$ In July $2023,$ the company capitalised $$750000$ incurred in designing improved hearing aids. Expenditure on research and development is deductible in full for tax purposes when paid but amortised over five years for accounting purposes.

ii$.$ Borrowing costs associated with financing land held for resale have been capitalised. The borrowing costs paid in June $2024$ amounted to $$50000$ and will be expensed for accounting purposes when the land is sold.

iii. The closing balance of the Allowance for doubtful debts at $1$ July $2024$ was $$7500,$ after accruing a further $$4500$ and writing off $$6000$ as bad debts during the year ended $30$ June $2024.$ Accounts receivable at $30$ June $2023$ was $$213000$ and the balance at $30$ June $2024$ was $$250000.$ Prepare the Allowance for doubtful debts T account.

iv$.$ The opening balance of the prepaid insurance at $1$ July $2023$ is $$30000.$ The annual premium of $$144000$ was paid in March $2024,$ with $$138000$ expensed during the year ended $30$ June $2024.$ Prepare the Prepaid insurance T account.