Boiling Pot Ltd commences operations on $1$ July $2022.$ One year after the commencement of its operations $(30$ June $2023)$ the entity prepares the following information, showing both the carrying amounts for accounting purposes and the tax bases of the respective assets and liabilities.

Carrying amounts $($$$)$ Tax bases $($$$)$

Assets

Cash $6000060000$

Accounts receivable$$net $5000060000$

Prepaid insurance $20000$

Inventory $8000080000$

Plant$$net $450000400000$

Land $600000400000$

$12600001000000$

Liabilities

Accounts payable $6000060000$

Provision for long$-$service leave $30000$

Provision for warranty $40000$

Loan payable $400000400000$

$530000460000$

Net assets $730000540000$

Page $765$Other information

After adjusting for differences between tax rules and accounting rules, it is determined that the taxable profit of Boiling Pot Ltd is $$700000.$

There is an allowance for doubtful debts of $$10000.$

An item of plant is purchased at a cost of $$600000$ on $1$ July $2022.$ For accounting purposes it is expected to have a life of four years; however, for taxation purposes it can be depreciated over three years. It is not expected to have any residual value.

Boiling Pot Ltd has some land, which cost $$400000$ and which has been revalued to its fair value of $$600000$ in accordance with AASB $116.$

None of the amounts accrued in respect of warranty expenses or long$-$service leave has actually been paid.

The tax rate is $30$ per cent.

REQUIRED

Prepare the year$-$end journal entries to account for tax using the balance sheet method.