ex6.7

Exercise 6.7 CALCULATION OF CURRENT TAX LIABILITY AND ADJUSTING JOURNAL ENTRY The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Violet for the year ended 30 June 2014, amounted to $60 000, including the following revenue and expense items: Rent revenue Government grant received (non-taxable) Bad debts expense 3 000 1 000 6000 CHAPTER6 Income taxes 203 Exercise 6.7 CALCULATION OF CURRENT TAX LIABILITY AND ADJUSTING JOURNAL ENTRY The profit before tax, as reported in the statement of profit or loss and other comprehensive income of Violet for the year ended 30 June 2014, amounted to $60 000, including the following revenue and expense items: Rent revenue Government grant received (non-taxable) Bad debts expense 3 000 1 000 6000 CHAPTER6 Income taxes 203