Flaxton Ltd made an accounting profit before tax of $40 000 for the year ended 30 June 2021. Included in the accounting profit were the following items of revenue and expense.

Donations to political parties (non?deductible)	5000
Depreciation expense machinery (20% p.a., straight?line)	15000
Annual leave expense	56000
Rent revenue	12000

For tax purposes the following applied.

Depreciation rate machinery	25%
Annual leave paid	65000
Rent received	10000
Income tax rate	30%

Required

1. Calculate the current tax liability for the year ended 30 June 2021, and prepare the adjusting journal entry.

2. Explain your treatment of rent items in your answer to requirement 1. Following AASB112