Calculate DTA and DTL and journal entries

As reported in the statement of comprehensive income of Wonderland Ltd (a manufacture company) for the year ended 30 June 2019:

The profit before tax amounted to: $730,000

and included the following revenue and expense items:

Rent revenue $22,000

Government grant received $41,000

Doubtful debts expense $4,000

Depreciation (Plant) $29,600

Depreciation (Buildings) $7,000

Warranty expense $20,000

Annual leave expense $13,000

Insurance expense $6,000

Entertainment expense $11,400

The draft statements of financial position of the company at 30 June 2019 and 2018 showed the following assets and liabilities: 2019 ($) 2018 ($)

Assets

Cash $47,000 $52,000

Inventory $102,000 $93,000

Accounts receivable $296,000 $282,000

Allowance for doubtful debts -$23,000 -$21,000

Prepaid insurance policy $12,000 $11,000

Plant $296,000 $296,000

Accumulated depreciation - Plant -$118,400 -$88,800

Buildings $182,000 $182,000

Accumulated depreciation - Buildings -$73,000 -$65,000

Land $ 114,000 $114,000

Goodwill (net) $45,000 $45,000

Deferred Tax Asset ? $6,480

Liabilities

Accounts payable $173,000 $155,000

Provision for warranty $36,000 $27,000

Annual leave payable $25,000 $18,000

Rent received in advance $15,000 $11,000

Deferred Tax Liability ? $0

Additional Information:

Rent revenue is tax assessable when it is received in cash

Government grant is not tax assessable

Doubtful debts are tax deductible when the company actually incurs bad debts/write offs

For accounting purposes, plant is depreciated using the straight line method at a rate of: 10% per annum

For tax purposes, however, plant is depreciated at a rate of: 15% per annum

Depreciation of buildings and entertainment expense are not allowed as tax deductions

Employee entitlements including annual leave are tax deductible when they are paid in cash to the employees Insurance expense is tax deductible when it is paid in cash

Warranty expense is tax deductible when it is paid in cash

Aggregated turnover for the years ended 30 June 2018 and 2019 is in excess of $25 million and it is expected that turnover will exceed $50 million in the year ended 30 June 2020

As reported in the statement of comprehensive income of Wonderland Ltd {a manufacture company] for the year ended 30 June 2013: The prot before tax amounted to: $730!!!) and included the following revenue and expense items: Rent revenue $22,(!!) Govemment grant received $41,(!!) Doubtful debts expense $4,(!!) Depreciation {Plant} $33!) Depreciation {Building} $7,(!!) Wa rTa nty expense $20,(!!) Annual leave expense $13,(!!) Insurance expense $6,(!!) Entertainment expense $11,!!!) The draft statements of nancial position of the company at 30 June 2013 and 2018 showed the following assets and a bities: N19 {5} 1018 (5} Assets Cash $47,000 $52,000 Inventory $102!!!) $93,(!!) Accounts receivable $296,!!!) $282,(!!) Allowance for doubtful debts $23,(!!) $21,(!!) Prepaid insurance poflcy $12,(!!) $11,(!!) Plant $296,\" $296,!!!) Accumulated depreciation Plant $118,4(!) $88,8(!) BUildiTB'i $132.\" $132.\" Accumulated depreciation Buildings $?3,(!!) $65,(!!) Land $114,000 $114,000 Goodwill {net} $45,!!!) $45,!!!) Defened Tax Asset ? $6,480 Lia birlties Accounts payable $173,[!!) $155,(!!) Provision for wananty $361!!) $271!!) Annual leave payable $25,(!!) $18,(!!) Rent received in advance $15,(!!) $11,(!!) Defened Tax Lia biflty ? $0 Additional Information: Rent revenue is tax assessable when it is received in cash Govemment grant is not tax assessable Doubtful debts are tax deductible when the company actually incurs bad debtsfwrite offs For amnting purposes, plant is depreciated using the straight ne method at a rate of: For tax purposes, however, plant is depreciated at a rate of: Depreciation of buildings and entertainment expense are not allowed as tax deductions Employee entitlements including annual leave are tax deductible when they are paid in cash to the employees Insurance expense is tax deductible when it is paid in cash Warranty expense is tax deductible when it is paid in cash Awegated turnover for the years ended 301une 2018 and 201.9 is in excess of $25 milflon and it is expected that turnover will exceed $50 milflon in the year ended 30 June 2020 10% 15% per annum per annum