Lourens Ltd commenced business on 1 July 2017. Before consideration of the items below, profit in its first year of operation was $300 000. (There were no differences between the accounting and tax treatments in arriving at that figure.) The following items have yet to be taken into account:

Property, plant and equipment was acquired on 1 July 2017 at a cost of $500 000. Depreciation is 20% per annum straight-line for accounting purposes and 30% reducing-balance for tax purposes.

The company recognised warranty expenses of $25 000, but warranty payments were only $5 000.

Accounts receivable at 30 June 2018, $300 000, doubtful debts expense, $15 000, and bad debts written off during the period, $2 500.

Employee benefits (annual leave and long-service leave) expense, $25 000; employee benefits liability as at 30 June 2018, $21 000.

The tax rate is 30%.

Required

Using the statement of financial position approach to tax allocation in AASB 112:

Calculate taxable income and prepare the general journal entry to record current income tax expense; and

Identify any temporary differences, determine the amount of any resulting deferred tax asset or deferred tax liability, and prepare the general journal entry to record deferred tax expense