On 1 July 2017, Bright Star Ltd was incorporated. The accounting profit and other relevant information of Bright Star for the three years to 2019 are as follows: 2019 2018 Profit before tax $4 500 000 $3 600 000 Warranty expense 1500 000 Depreciation expense machinery 60 000 60 000 Gain on sale of machinery for accounting Warranty paid 750 000 Tax depreciation machinery 90 000 90 000 Gain on sale of machinery for tax Provision for warranty carrying amount 750 000 1500 000 Provision for warranty tax base Machinery carrying amount 180 000 240 000 Machinery tax base 120 000 210 000 The company tax rate is 30%.

Required (a) Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 (4 marks)

(b) Prepare the required tax journal entries for each year. (3 marks)