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calculate the current tax payable Exercise Three Alpha Ltd's accounting profit for the year ended 30 June 2019 was $250 450. Included in this profit
calculate the current tax payable
Exercise Three Alpha Ltd's accounting profit for the year ended 30 June 2019 was $250 450. Included in this profit were the following items of income and expenses. $30 000 7 000 Amortisation expense development project Impairment of goodwill expense Depreciation expense equipment (15%) Entertainment expense Insurance expense Doubtful debts expense Annual leave expense Rent revenue Loss on equipment sold 40 000 12 450 24 000 14 000 54 000 25 000 6 667 At 30 June 2019, the company's draft statement of financial position showed the following balances. vice-year-ended-30-... 3/4 30 June 2019 30 June 2018 $65 000 277 000 (18000) 185 000 25 000 5 500 Assets Cash Accounts receivable Allowance for doubtful debts Inventories Prepaid insurance Rent receivable Development project Accumulated amortisation - development project Equipment Accumulated depreciation equipment Goodwill Accumulated impairment goodwill Deferred tax asset Liabilities 55 000 295 000 (16 000) 162 000 30 000 3 500 120 000 (30 000) 200 000 (90 000) 35 000 (14000) ? 266 667 (80 000) 35 000 (7000) 24 900 Accounts payable Provision for annual leave Mortgage loan Deferred tax liability Current tax liability 310 500 61 000 100 000 ? 294 000 65 000 150 000 57 150 12 500 ? Additional information . Taxation legislation allows Alpha Ltd to deduct 125% of the $120 000 spent on development during the year. Alpha Ltd has capitalised development expenditure relating to a filter project and amortises the balance over the period of expected benefit (4 years). The tax depreciation rate for equipment is 20% p.a. The loss on sale of equipment included in the accounting profit for the year ended 30 June 2020 refers to equipment sold on 30 June 2020 that had an original cost of $66 667 when it was purchased 3 years ago and a carrying amount at the time of sale of $36 667. Neither entertainment expenditure nor goodwill impairment expense is deductible for taxation purposes. The company income tax rate is 30%. . . Required Calculate the current tax payable
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