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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 June 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 the company capitalised $ 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 amounted to $ and
will be expensed for accounting purposes when the land is sold.
iii. The closing balance of the Allowance for doubtful debts at July was
$ after accruing a further $ and writing off $ as bad debts
during the year ended June Accounts receivable at June was
$ and the balance at June was $ Prepare the
Allowance for doubtful debts account.
iv The opening balance of the prepaid insurance at July is $ The
annual premium of $ was paid in March with $
expensed during the year ended June Prepare the Prepaid insurance T
account.
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