For the year ended 30 June 2020, Marbig Ltd recorded an accounting profit of $267,000 which included the following items:

Depreciation of machinery$35,000

Doubtful debts expense$11,000

Long service leave expense$33,000

The following amounts are included in the balance sheet for Marbig Ltd:

2020

2019

Machinery$ 350,000

350,000

Accumulated depreciation - machinery(115,000)

(80,000)

Accounts receivable124,000

143,000

Allowance for doubtful debts(21,000)

(23,000)

Provision for long service leave167,000

179,000

The machinery is depreciated 10% straight line for accounting purposes, whereas tax depreciation is 20% straight line. Assume a tax rate of 30%