Exercise 12.15 Kilcoy Ltd has determined its accounting profit before tax for the year ended 30 June 2020 to be $242,551. Included in this profit are the items of revenue and expense shown below. Royalty revenue (non-taxable exempt income) $8,470 Proceeds on sale of building 79,900 Entertainment expense 1,593 Depreciation expense buildings 7,713 Depreciation expense plant 23,310 Carrying amount of building sold 72,940 Doubtful debts expense 4,208 Annual leave expense 43,610 Insurance expense 4,128 Development expense 13,970 The company's draft statement of financial position at 30 June 2020 showed the following assets and liabilities: $2,310 $20,310 (4,208) Assets Cash Accounts receivable Less: Allowance for doubtful debts Inventories Prepaid insurance Land Buildings Less: Accumulated depreciation Plant Less: Accumulated depreciation Deferred tax asset (opening balance) 16,102 31,779 4,640 79,470 104,910 165,970 (61,060) 145,500 (69,670) 75,830 9,534 324,575 Liabilities Accounts payable Provision for annual leave Deferred tax liability (opening balance) Loan 23,770 9,180 6,090 150,260 $189,300 Additional information (a) Quarterly income tax instalments paid during the year were: 28 October 2019 $18,300 28 January 2020 16,720 28 April 2020 18,590 with the final balance due on 28 July 2020. (b) The annual tax depreciation rate for plant (which cost $145,500 3 years ago) is 20%, straight-line. Depreciation on buildings is not deductible for taxation purposes. (c) The building sold during the year had cost $104,200 when acquired 6 years ago. The company depreciates buildings at 5% p.a., straight-line. Any gain (loss) on sale of buildings is not taxable (i.e. not deductible). (d) During the year, the following cash amounts were paid: Annual leave $47,870 Insurance 3,813 (e) Bad debts of $3,670 were written off against the allowance for doubtful debts during the year. (f) The $13,970 spent (and expensed) on development during the year is not deductible for tax purposes until 30 June 2021. (9) Kilcoy Ltd has tax losses amounting to $13,610 carried forward from prior years. (h) The company tax rate is 30%. (a) Prepare the current tax worksheet to recognise current tax at 30 June 2020. Kilcoy Ltd Current tax worksheet for year ended 30 June 2020 Add: $ Deduct: Add: Less: Less