Question
Mandiri Ltd made an accounting profit before tax of $80 000 for the year ended 30 June 2024. Included in the accounting profit were the
Mandiri Ltd made an accounting profit before tax of $80 000 for the year ended 30 June 2024. Included in the accounting profit were the following items of revenue and expense.
| Donations to political parties (nondeductible) | $7000 |
| Depreciation expense machinery (20% p.a., straightline) | $18000 |
| Annual leave expense | $6400 |
| Rent revenue | $12000 |
For tax purposes the following applied.
| Depreciation rate machinery | 25% |
|
| Annual leave paid | $7800 |
|
| Rent received | $10000 |
|
| Income tax rate | 30% |
|
Required
- Calculate the current tax liability for the year ended 30 June 2024, and prepare the adjusting journal entry.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, George Foster
12th edition
978-0131495388
