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Calculate the carrying amount and the tax base of the following assets and liabilities at 3 0 June 2 0 2 4 using the following

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):
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.
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