It is the year ended 30 June 2021 and Kirigan Ltd has prepared the following Income Statement: Kirigan Ltd Income Statement for the year $ ended 30 June 2021 Revenue Sales revenue 2,000,000 Less Expenses Administration expense 200,000 Salary expense 500,000 Entertainment expense 140,000 Doubtful debts expense 150,000 (990,000) Profit before tax 1,010,000 Also, the following information is extracted from the Balance Sheet as at 30 June 2021: Kirigan Ltd Balance Sheet as at 30 June 2021 $ Assets (extracts) Accounts receivable - net 200,000 Derivative Forward contract 100,000 Liabilities (extracts) Salary payable 65,000 Kirigan Ltd also has the following information for the year ended 30 June 2021: . Sales revenue, including those on credit terms, are taxed at the time the sales are made. a All the administration expense has been paid. For tax purposes, the actual amounts paid are deductible. 0 During the year, Kirigan Ltd recognised $500,000 for its salary expense. At year end, salary payable account has a balance of $65,000. On 1 July 2020, the opening balance for salary payable was $120,000. Only actual amounts paid are allowed as a tax deduction. - During the year, Kirigan Ltd spent $140,000 on entertainment expense. For tax purposes, only 50% of entertainment expense is deductible, the remaining 50% can never be deductible for tax purposes. . The opening balance (on 1 July 2020) of the allowance for doubtful debts was $50,000. During the year, Kirigan Ltd recognised $150,000 as doubtful debts expense. At year end, the closing balance of the allowance for doubtful debts is $15,000. The doubtful debts expense is not tax deductible until the debtor is actually written off as bad. 0 During the year, Kirigan Ltd planned to expand into the Singapore market and expected to make a sale of S$400,000 on 1 May 2022. Kirigan Ltd was concerned about the exchange rate risk associated with this forecast sale. As a result, Kirigan Ltd entered into a fonlvard contract to hedge the exchange rate risk, with the settlement date on 30 June 2022. At year end (Le, 30 June 2021), the fair value of the fonlvard contract was $100,000. The hedge was deemed to be effective and the gain from the fomard was fully recognised in an equity account called \"hedge reserve". For tax purposes, the gain is not taxable until the fonlvard contract is settled. a As at 1 July 2020, total deductible temporary differences were $170,000 and total taxable temporary differences were $0. . The tax rate changed from 30 percent to 25 percent at the beginning of the current nancial year (i.e., on 1 July 2020). (a) In accordance with N2 IAS 12, calculate Kirigan Ltd's taxable prot and provide the journal entry for its current tax for the year ended 30 June 2021. Use WORKSHEET 3 for your answer.