1. Based on the above work justify the treatment of the following accounts in the current tax worksheet and explain how and why this leads to the deferred tax consequence shown in the deferred tax worksheet:
   1. Subscription revenue
   2. Rent expense
   3. Maintenance expense

4,020,000 1) Calculate the taxable income tax loss and the current tax liability (if any) for the financial year ended 30th June 2019. Prepare a journal entry to recognise the current tax liability/tax loss. Accounting profit before Tax Add: Subscription Paid 150,000 Doubtful Debts Expense 25,000 Depreciation - Equipment 163.300 Depreciation - Buildings 40.000 Maintenance Expense 113,000 Employee Benefits Expense 75,000 Rent Expense 37 000 Entertainment Expense 62,800 666,100 Less: Subscription Income Bad Debts Written Off Maintenance Paid Employee Benefits Paid Prepaid Rent Government Award Income 125,000 15,000 62,000 37 000 70.000 226,000 535,000 Taxable income Tak payable 4,151,100 1.245,330 Dr Journal entry Dr income tax expense Cr Income Tax Payable 1245 330 1.245 330 Workings: Subscription Revenue Balance Subscription Received in Advance 125,000 Balance b/ 87.000 Cash 62,000 150,000 Bad debts written of Balance Allowance For Doubtful Debts 15.000 Balance bf 130,000 Doubtful Debts Expense 120,000 25,000 Cash Balance c/ Provision for Maintenance 62,000 Balance b/f 201,000 Maintenance Expense 150,000 113,000 Cash Balance c/l 37 000 Balance bf 138,000 Employee Benefits Expense 100,000 75,000 Balance Prepaid rent 65,000 Rent Expense 42,000 Balance / 37.000 70,000 2) Calculate deferred tax asset and deferred tax liability balances as at 30th June 2019. journal entries for the year ended 30th June 2019 Prepare the deferred tax Assets 261 000 SAS.000 1,633,000 70,000 inventory Accounts Receiveable Allowance for Doubtful Debts Prepaid Rent Equipment Accumulated Depreciation Equipment Buildings Accumulated Depreciation - Buildings 253,000 565,000 1633.000 13 000) 70,000 1,633, 300 1653 200 1,005,000 (402,000) 628,000 251,000 326,600 1631 300l 979,800 1,005,000 (402,000) 628,000 251,000 Land Goodwill net) 954,000 Liabilities Accounts Payable Provision for Maintenance Provision for Employee Benefits Subscription Received in Advance 954,000 201.000 138,000 87.000 201.000 138.000 87.000 559.000 Total Temporary Difference Deferred Tax ability Deferred tax Asset Less Opening Balance Adjustment required 167,700 131035 Journal entry: De Deferred Tax Asset of income Tax Expense Deferred Tax Liability