has annual salary expense of

$650000.

In addition,

Salborne

incurs payroll tax expense equal to

11%

of the total payroll. At 30

November,

the end of the financial year,

Salborne

owes salaries of

$10000

and payroll tax of

$2400.

RequirementShow what

Salborne

will report for these facts in its income statement and year-end classified balance shee