Camelia Ltd reported $150,000 of profit before tax in the statement of comprehensive income for the year ended 30 June 2021, including the following revenue and expense items.

Depreciation expense machinery	$14,000
Depreciation expense building (non-deductible)	3,000
Entertainment costs (non-deductible)	4,000
Warranty expense	5,000
Annual leave expense	12,000
Bad debts expense	20,000
Rent revenue	15,000

Additional information

• Depreciation of machinery for tax purposes for the year ended 30 June 2021 amounted to $15,000.
• Bad debts written off $8,000.
• Annual leave paid $5,000.
• Warranty expense paid $3,000.
• The tax rate is 30%.

Required:

1. Compute the taxable income or loss. (using excel spreadsheet). 4 Marks
2. Prepare the journal entry to recognise the companys current tax liability as at 30 June 2021. (using excel spreadsheet). 1 Mark