For the year ended 31 July 2017 Barbados Energy Ltd (BEL) made taxable trading profits of $6,200,000 on which income tax is payable at 35%.

1. A transfer of $110,000 will be made to the deferred taxation account. The balance on this account was $600,000 before making any adjustments for items listed in this paragraph.

2. The estimated tax on profits for the year ended 31 July 2016 was $150,000, but tax for that year has now been agreed at $140,000.

3. Tax on profits for the year to 31 July 2017 is payable on 1 May 2018.

4. In the year to 31 July 2017 the company made a capital gain of $420,000 on the sale of property. This gain is taxable at a rate of 35%.

Required:

(a) Calculate the tax charge for the year to 31 July 2017

(b) Calculate the tax liabilities in the statement of financial position of BEL as at 31 July 2017.