Exercise 12.22 The accounting profit before tax of Collingwood Ltd for the year ended 30 June 2020 was $191,659. It included the following revenue and expense items: Government grant (non-taxable exempt income) $3,474 Interest revenue 11,940 Long service leave expense 7,130 Doubtful debts expense 4,568 Depreciation plant (15% p.a., straight-line) 35,550 Rent expense 22,506 Entertainment expense (non-deductible) 4,245 The draft statement of financial position as at 30 June 2020 included the following assets and liabilities: 2019 $7,650 83,385 (3,016) 56,667 Cash Accounts receivable Allowance for doubtful debts Inventories Interest receivable Prepaid rent Plant Accumulated depreciation plant Deferred tax asset Accounts payable Provision for long service leave Deferred tax liability 2020 $8,860 79,780 (5,200) 64,891 1,100 2,800 237,000 (106,650) ? 67,622 2,346 237,000 (71,100) 29,070 77,176 63,100 61,174 678 Additional information The tax depreciation rate for plant is 10% p.a., straight-line. The tax rate is 30%. The company has $14,230 in tax losses carried forward from the previous year. A deferred tax asset was recognised for these losses. Taxation legislation allows such losses to be offset against future taxable profit. (a) Prepare the worksheets to calculate the current tax liability and the movements in deferred tax accounts for the year ended 30 June 2020. Collingwood Ltd Current tax worksheet for year ended 30 June 2020 Add: > Deduct: >