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i need the answer urgently i have a class in an hour ACCY200 Financial Accounting IIA Spring 2017 Special Question 3 (due in week 4
i need the answer urgently i have a class in an hour
ACCY200 Financial Accounting IIA Spring 2017 Special Question 3 (due in week 4 tutorial) Bay Ltd has completed the current tax end of year adjustment for 30 June 2016: Dr Deferred tax asset 4,860 Cr Income tax expense (current) 4,860 Using the information below, as well as the entry above, Bay Ltd requires your help to complete end of year adjustments for income tax. Statement of Financial Position (extract) for 30 June 2016 $ Accounts receivable 82 000 Allowance for doubtful debts (9 000) Prepaid insurance 9 100 Rent receivable 35 000 Vehicle 80 000 Accumulated depreciation - vehicle (24 000) Interest payable 21 000 Provision for long service leave 12 400 Additional information: On 1 July 2015 the Deferred Tax Asset had a balance of $13 400 and the Deferred Tax Liability had a balance of $12 500. The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. Accumulated depreciation on vehicle for tax purposes at 30 June 2015 was $32 000. The tax rate is 30%. Required: Prepare a deferred tax worksheet and the deferred tax journal entry for Bay Ltd for the year ended 30 June 2016. SHOW ALL WORKING OUTStep by Step Solution
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