Jamie Ltd's profit before tax for the year ended 30 June 2020 was $172,400. Included in this

profit are the following items of income and expense:

Amortisation of development costs $12,000

Carrying amount of equipment sold 11,000

Depreciation - building (6%) 15,000

Depreciation - equipment (15%) 15,000

Depreciation - motor vehicle (20%) 5,800

Doubtful debts expense 1,700

Employee benefits expense 7,000

Entertainment expense 3,500

Fines and penalties 4,400

Goodwill impairment 2,000

Insurance expense 1,400

Interest revenue 800

Proceeds on sale of equipment 19,000

Rent revenue 15,000

Royalty revenue (exempt income) 3,000

Warranty expense 7,000

At 30 June, the company's draft statements of financial position showed the following

balances:

2020 2019

Assets

Cash $14,300 $10,200

Accounts receivable 18,000 22,000

Allowance for doubtful debts (2,000) (3,500)

Inventories 33,000 43,500

Interest receivable 800 1,200

Prepaid Insurance 4,000 4,200

Rent receivable 3,900 3,700

Development costs 48,000 -

Accumulated amortisation (12,000) -

Motor vehicle 29,000 29,000

Accumulated depreciation (23,200) (17,400)

Equipment 100,000 120,000

Accumulated depreciation (60,000) (54,000)

Buildings 250,000 250,000

Accumulated depreciation (90,000) (75,000)

Deferred tax asset ? 24,060

Goodwill 12,000 12,000

Goodwill - accumulated impairment losses (5,000) (3,000)

Liabilities

Accounts payable 27,000 24,500

Current tax liability ? 7,600

Provision for employee benefits 12,500 8,000

Provision for warranties 8,700 4,200

Mortgage loan 160,000 150,000

Deferred tax liability ? 4,275

Additional information:

1. A tax deduction for development costs on 125% of the amount spent during the year is

available under the Tax Act. The profit reflects the amount of development costs

amortised in the current period.

2. A tax deduction of $10,000 (10%) can be claimed on equipment.

3. The motor vehicle is depreciated at 25% for tax purposes.

4. The equipment sold on 1 July 2019 cost $20,000 when it was purchased 3 years before

the date of sale.

5. Deductions are only available for annual leave when amounts are paid and not as they

are accrued.

6. Actual amounts paid for insurance are allowed as a tax deduction.

7. No deduction is allowed for taxation purposes in relation to entertainment, fines, and

penalties.

8. Rent revenue and interest are taxable when amounts are received.

9. Depreciation of buildings is not allowed as a tax deduction.

10. The deferred tax asset (DTA) balance at 30 June 2019 comprised:

a) DTAs relating to temporary differences: $10,110

b) DTAs relating to carried forward tax losses: $13,950

11. No journal entries related to deferred tax have been recorded for the year ended 2020.

Assume the tax balances at 30 June 2019 are correct.

12. The tax rate is 30%.

Required:

1. Prepare the deferred tax worksheet to calculate the deferred tax asset and liability

balances and adjustments for the year ended 30 June 2020.

Include all accounts and net balances where appropriate.

2. Prepare the journal entries to recognise the deferred tax assets,

and liabilities at 30 June 2020.