ohtinues on next page Page 2 of 20 Question 1 (continued) The tax deduction for plant depreciation was $57,600. Accumulated depreciation at 30 June 2019 for taxation purposes was $312,960. In the previous year, 'X' Ltd had made a tax loss of S36,800. X Ltd recognised a deferred tax asset in respect of this loss. The tax rate is 30%. Required: (a) Prepare the current tax worksheet and journal entry/entries to calculate and record the current tax for the year ended 30 June 2020. (11 marks) (b) Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts for the year ended 30 June 2020. (7 marks) Page 3 of 20 Focus 120% 18 ohtinues on next page Page 2 of 20 Question 1 (continued) The tax deduction for plant depreciation was $57,600. Accumulated depreciation at 30 June 2019 for taxation purposes was $312,960. In the previous year, 'X' Ltd had made a tax loss of S36,800. X Ltd recognised a deferred tax asset in respect of this loss. The tax rate is 30%. Required: (a) Prepare the current tax worksheet and journal entry/entries to calculate and record the current tax for the year ended 30 June 2020. (11 marks) (b) Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts for the year ended 30 June 2020. (7 marks) Page 3 of 20 Focus 120% 18 Question 1 18 Marks 'X' Ltd has determined its accounting profit before tax for the year ended 30 June 2020 to E $133,440. Included in this profit are the items of revenue and expense shown below. Doubtful debts expense Depreciation expense -plant Insurance expense Annual leave expense Government grant (non-taxable) Entertainment expense (non-deductible) Gain on sale of plant $ 16,200 $ 48,000 S 25,800 $ 30,800 $ 11,000 $ 16,400 $ 6,000 The draft statement of financial position as at 30 June 2020 included the following assets and liabilities: Accounts receivable Allowance for doubtful debts Prepaid insurance Plant Accumulated depreciation - plant Deferred tax asset Provision for annual leave Deferred tax liability 2020 $ 312,000 S (13,600) s 6,800 $ 480,000 S (268,800) 2019 $ 295,000 S (10,400 $ 11,200 S 580,000 S(260,800) $ 19,980 $ 19,400 s 19,008 $ 28,200 Additional information . For tax purposes, the carrying amount of plant sold was $52,000. This sale was the only movement in plant for the year. Page 2 of 20 O Focus 120% O W 18 MacBook PP Search or type URL ohtinues on next page Page 2 of 20 Question 1 (continued) The tax deduction for plant depreciation was $57,600. Accumulated depreciation at 30 June 2019 for taxation purposes was $312,960. In the previous year, 'X' Ltd had made a tax loss of S36,800. X Ltd recognised a deferred tax asset in respect of this loss. The tax rate is 30%. Required: (a) Prepare the current tax worksheet and journal entry/entries to calculate and record the current tax for the year ended 30 June 2020. (11 marks) (b) Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts for the year ended 30 June 2020. (7 marks) Page 3 of 20 Focus 120% 18 ohtinues on next page Page 2 of 20 Question 1 (continued) The tax deduction for plant depreciation was $57,600. Accumulated depreciation at 30 June 2019 for taxation purposes was $312,960. In the previous year, 'X' Ltd had made a tax loss of S36,800. X Ltd recognised a deferred tax asset in respect of this loss. The tax rate is 30%. Required: (a) Prepare the current tax worksheet and journal entry/entries to calculate and record the current tax for the year ended 30 June 2020. (11 marks) (b) Prepare the deferred tax worksheet and journal entries to adjust deferred tax accounts for the year ended 30 June 2020. (7 marks) Page 3 of 20 Focus 120% 18 Question 1 18 Marks 'X' Ltd has determined its accounting profit before tax for the year ended 30 June 2020 to E $133,440. Included in this profit are the items of revenue and expense shown below. Doubtful debts expense Depreciation expense -plant Insurance expense Annual leave expense Government grant (non-taxable) Entertainment expense (non-deductible) Gain on sale of plant $ 16,200 $ 48,000 S 25,800 $ 30,800 $ 11,000 $ 16,400 $ 6,000 The draft statement of financial position as at 30 June 2020 included the following assets and liabilities: Accounts receivable Allowance for doubtful debts Prepaid insurance Plant Accumulated depreciation - plant Deferred tax asset Provision for annual leave Deferred tax liability 2020 $ 312,000 S (13,600) s 6,800 $ 480,000 S (268,800) 2019 $ 295,000 S (10,400 $ 11,200 S 580,000 S(260,800) $ 19,980 $ 19,400 s 19,008 $ 28,200 Additional information . For tax purposes, the carrying amount of plant sold was $52,000. This sale was the only movement in plant for the year. Page 2 of 20 O Focus 120% O W 18 MacBook PP Search or type URL