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Mariam Kimchi Bhd has determined its accounting profit before tax for the year ended 30 June 2022 to be RM513 400. Included in this profit

  1. Mariam Kimchi Bhd has determined its accounting profit before tax for the year ended 30 June 2022 to be RM513 400. Included in this profit are the items of revenue and expense shown below.

RM

Royalty revenue

16 000

Proceeds on sale of building

150 000

Entertainment expenses

3 400

Depreciation expenses- building

15 200

Depreciation expenses- plant

45 000

Carrying amount of the building sold

140 000

Doubtful debts expense

8 200

Annual leave expenses

92 000

Insurance expenses

8 400

Development expenses

30 000

The company’s draft statement of financial position at 30 June 2022 showed the following assets and liabilities.

Assets

RM

RM

Cash

5 000

Account Receivable

43 000

Less: Allowance for doubtful debts

(8 200)

34 800

Inventory

63 200

Prepaid insurance

9 000

Land

150 000

Buildings

340 000

Less: Accumulated depreciation

(119 000)

221 000

Plant

300 000

Less: Accumulated depreciation

(135 000)

165 000

Deferred tax asset (opening balance)

19 200

667 200

Liabilities

Account payable

50 000

Provision for annual leave

20 000

Deferred tax liability (opening balance)

12 000

Loan

280 000

362 000

Additional information

  1. Quarterly income tax instalments paid during the year were:

20 October 2021

RM36 000

28 January 2022

35 000

28 April 2022

36 000

with the balance due on 28 July 2022

  1. The tax depreciation rate for plant (which cost RM300 000, three years ago) is 20%. Depreciation on buildings is not deductable for taxation purposes.
  2. The building sold during the year had cost RM200 000 when acquired 6 years ago. The company depreciates building at 5% p.a., straight-line. Any gain (loss) on sale of buildings is not taxable (i.e., not deductable)
  3. During the year, the following cash amount were paid:

Annual leave

RM104 000

Insurance

7 400

  1. Bad debts of RM7 000 were written off against the allowance for doubtful debts during the year
  2. The RM30 000 spent (and expensed) on development during the year is not deductable for tax purposes until 30 June 2023
  3. Mariam Kimchi Bhd. has tax losses amounting to RM25 000 carried forward from prior years
  4. The company tax rate is 30%.

Required:

Determine the balance of any current and deferred tax asset and liabilities for Mariam Kimchi Bhd as at 30 June 2022.

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