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Mandiri Ltd made an accounting profit before tax of $80,000 for the year ended 30 June 2021. Included in the accounting profit were the following
Mandiri Ltd made an accounting profit before tax of $80,000 for the year ended 30 June 2021. Included in the accounting profit were the following items of revenue and expense. Donations to political parties (non-deductible) $7,000 Depreciation expense -- machinery (20% p.a., straight-line) $18,000 Annual leave expense $6,400 Rent revenue $12,000 For tax purposes the following applied. Depreciation rate --- machinery 25% Annual leave paid $7,800 Rent received $10,000 Income tax rate 30% Required a) Calculate the current income tax payable. (20-points). b) Prepare the journal entry. (10-points)
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