corporate accounting

Revision Question Current tax worksheets and tax entries Merelyn Ltd reported a profit before tax for the year to 30 June 2017 of $600 000. The company's statements of financial position include assets and liabilities as follows: 2017 2016 Accounts receivable $260,000 $200,000 Allowance for doubtful debts ($30,000) ($15,000) Building - at cost Accumulated depreciation $400,000 ($150,000) $400,000 ($100,000) Provision for Warranty Provision for long-service leave $60,000 $40,000 $70,000 $60,000 ? Deferred tax asset Deferred tax liability ? $15,000 $40,000 (a) Expenses included in profit for the yearto 30 June 2017 are as follows: Penalties expense Depreciation Expense for Building Doubtful Debts Expense Long-service Leave Expense Warranty Expense $30,000 $50,000 $35,000 $20,000 $10,000 (b) Accumulated depreciation on Building for tax purposes is $300,000 on 30/06/2017 and $200,000 on 30 June 2016. There have been no acquisitions or disposals of building during the current year. (c) The corporate tax rate is 30%. Required: Complete the current tax worksheet and deferred tax worksheets, and prepare the tax entries for 30 June 2017