KB Ltd purchased a machine on 1 July 2014 for $320,000. The machine is expected to have a useful life of 4 years (straight-line basis) and no residual value. The ATO allows the company to depreciate the asset over 5 years for taxation purposes. The profit before tax for the company for the year ending 30 June 2015 is $500,000. The tax rate is 30%. Required: a) Calculate the company's taxable profit and hence its tax payable for 2015. ANSWER a:

b) Determine the deferred tax liability or deferred tax asset that will result. ANSWER b:

c) Prepare the necessary journal entries on 30 June 2015.