On 30 June 2021 Captain Ltd had the following balances: current tax liability of $23,000; deferred tax asset $12,000 (2020: $9,000); deferred tax liability $14,000 (2020: $8,000); and, profit and loss summary $42,000. Assuming there are no other changes to the deferred tax accounts throughout the year, and the income tax rate is 30%, the total income tax expense that Captain Ltd will report in the Profit or Loss and Other Comprehensive Income Statement for 30 June 2021 is: Select one: O a. $12,600 O b. $20,000 O c. $26,000 O d. $23,000 After initial recognition on 1 October 2020 of equipment at $50,000 (straight line depreciation, 5 years useful life), equipment is carried at what amount on 30 June 2021? Select one: O a $40,000 Ob. $7,500 O c. $42,500 O d. $50,000 Brunch Ltd has a building which cost $475,000 and has an accumulated depreciation balance of $83,125. The accumulated depreciation for tax purposes is $66,500 and the company tax rate is 30%. The tax base of this asset is: Select one: O a. $122,550 O b. $408,500 Oc. $66,500 O d. $391,875 On 27 February 2021 Cal Ltd received specialised equipment that had been purchased from Jas Ltd at a price of $43,000. In order for the equipment to operate for Cal Ltd in a way that management had specified, Jas Ltd had to add a part that would cost Cal Ltd an additional $2,500. The equipment was transported at a cost of $1,500. During installation of the equipment in Cal Ltd's factory, damage was done to a wall and cost Cal Ltd $800 to repair. On 1 March 2021 the equipment was ready to use. Cal Ltd estimated that the equipment had a residual value of $2,000 and a useful life of 5 years. Cal Ltd uses the straight-line method to depreciate equipment. The amount that Cal Ltd should record for depreciation on 30 June 2021 is: Select one: O a. $2,900 b. $2,733 . $3,000 O d. $9,000 Vax Ltd acquired a vehicle on 1 July 2019 for $32,000. The estimated useful life of the vehicle at acquisition date was 4 years and the residual value was $2,000. Vax Ltd uses straight line depreciation on vehicles. The company sold the vehicle on 1 January 2022 for $12,000. The journal entry(ies) needed to reflect the sale will be: Select one: O a. DR Cash 12,000 DR Accumulated depreciation 22,500 CR Gain on sale 2,500 CR Vehicle 32,000 O b. DR Cash 12,000 CR Proceeds on sale 12,000; DR Carrying amount of vehicle 13,250 CR Vehicle 13,250 O c. DR Cash 12,000 DR Accumulated depreciation 18,750 DR Loss on sale 1,250 CR Vehicle 32,000 O d. DR Cash 12,000 CR Proceeds on sale 12,000; Dr Accumulated depreciation 26,250 DR Carrying amount of vehicle 5,750 CR Vehicle 32,000
