Care Limited reports an accounting profit before tax of $800,000 for the year ended 31 March 2021. This amount includes the following revenue and expense items in the Income Statement: Sales revenue Interest income Salary expense Administration expense Entertainment expense Depreciation expense You have also been provided the following information: Sales revenue: The business has recognised $2,000,000 as sales revenue in the Income Statement of this $2,000,000 sales revenue, the business only received $1,700,000 cash from customers. For tax purposes, sales revenue is taxable when the sale is made. Interest income: The business has recognised $80,000 interest income in the Income Statement. However, only $60,000 of the interest income is received in cash. For tax purposes, interest income is taxable when cash is received. Salary expense: During the year, $600,000 salary expense was recognised in the Income Statement. However, only $560,000 is paid to the staff. For tax purposes, salary expense is deductible when incurred. Administration expense: The business has recognised $150,000 administration expense in the Income Statement. However, only $125,000 cash is paid out for this expense. For tax purposes, administration expense is deductible when cash is paid. Entertainment expense: During the year, $70,000 entertainment expense was paid and recognised in the Income Statement. For tax purposes, only 50% of the entertainment expense can be claimed as a deductible expense, the other 50% can never be deductible. Depreciation expense: Specialised machinery was acquired on 1 April 2019 at a cost of $500,000. The machinery has an economic life of 10 years with no residual value. For tax purposes, the machinery has an economic life of 5 years with no residual value. The straight- line method of depreciation is used to depreciate the machinery for both accounting and tax purposes. Tax rate is 28% Required: In accordance with NZ IAS 12, calculate the taxable profit and current tax payable. Also prepare journal entry to recognise the current tax payable for the year ended 31 March 2021. Show all workings. Care Limited reports an accounting profit before tax of $800,000 for the year ended 31 March 2021. This amount includes the following revenue and expense items in the Income Statement: Sales revenue Interest income Salary expense Administration expense Entertainment expense Depreciation expense You have also been provided the following information: Sales revenue: The business has recognised $2,000,000 as sales revenue in the Income Statement of this $2,000,000 sales revenue, the business only received $1,700,000 cash from customers. For tax purposes, sales revenue is taxable when the sale is made. Interest income: The business has recognised $80,000 interest income in the Income Statement. However, only $60,000 of the interest income is received in cash. For tax purposes, interest income is taxable when cash is received. Salary expense: During the year, $600,000 salary expense was recognised in the Income Statement. However, only $560,000 is paid to the staff. For tax purposes, salary expense is deductible when incurred. Administration expense: The business has recognised $150,000 administration expense in the Income Statement. However, only $125,000 cash is paid out for this expense. For tax purposes, administration expense is deductible when cash is paid. Entertainment expense: During the year, $70,000 entertainment expense was paid and recognised in the Income Statement. For tax purposes, only 50% of the entertainment expense can be claimed as a deductible expense, the other 50% can never be deductible. Depreciation expense: Specialised machinery was acquired on 1 April 2019 at a cost of $500,000. The machinery has an economic life of 10 years with no residual value. For tax purposes, the machinery has an economic life of 5 years with no residual value. The straight- line method of depreciation is used to depreciate the machinery for both accounting and tax purposes. Tax rate is 28% Required: In accordance with NZ IAS 12, calculate the taxable profit and current tax payable. Also prepare journal entry to recognise the current tax payable for the year ended 31 March 2021. Show all workings