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At 30 June 2016 , Grace It'd had the following deferred tax balances .* Deferred tax liability $ 18OOD Deferred tax asset 15 0.00 285
At 30 June 2016 , Grace It'd had the following deferred tax balances .* Deferred tax liability $ 18OOD Deferred tax asset 15 0.00 285 Grace It'd recorded a profit before tax of $80 0DO for the year to 30 June ? included the following itemis ! Depreciation expense - plant $ 7 0.00 Doubtful debts EXPENSE* 3000 Long - service leave EXPENSE* 4000 For taxation purposes the following amounts are allowable deductions for the 2017 : Tax depreciation - plant Bad debts written off* 2000 Depreciation rates for taxation purposes are higher than for accounting pulpo? tax rate of 30 96 applies . Required 1 . Prepare a current tax worksheet to determine the taxable income for the JUNE 2017 . 2. Determine by what amount the balances of the deferred tax liability all asset will increase or decrease for the year to 30 June 201 7 because of doubtful debts and long- Service leave . 3 . Prepare all journal entries to account for income tax assuming TECOFTHI satisfied. What are the balances of the deferred tax liability and deferred tax ass 2017
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