ou are the tax accountant of VIC Ltd. and are currently preparing the tax information for inclusion in the financial statements. An extract from the statement of profit or loss and other comprehensive income for the year ended 30 June 2022 is as follows:

The accounting profit before tax	$28 000
Included in the profit:
Rent revenue	16,000
Doubtful debts expense	2,000
Entertainment expense (non-deductible)	1,500
Interest expense	2,000
Annual leave expense	6,000
Depreciation expense motor vehicle (25% p.a. straight-line)	4,000
Depreciation expense equipment (20% p.a. straight-line)	20,000

The draft statement of financial position at 30 June 2022 contained the following assets and liabilities.

	2022	2021
Assets
Cash	$11,000	$ 9,000
Accounts receivable	12,000	14,000
Allowance for doubtful debts	(3,000)	(2,500)
Inventories	19,000	21,000
Motor vehicle at cost	16,000	16,000
Accumulated depreciation motor vehicle	(12,000)	(8,000)
Equipment at cost	100,000	100,000
Accumulated depreciation equipment	(60,000)	(40,000)
Deferred tax asset	?	6,000
Liabilities
Accounts payable	15,000	21,000
Interest payable	1,000	6,000
Provision for annual leave	4,500	6,000
Current tax liability	?	7,000
Deferred tax liability	?	1,000

Additional information

• The motor vehicle is fully depreciated for tax purposes.
• The company claims tax depreciation on equipment at the rate of 25% p.a.
• The company tax rate is 30%.

Required:

1. Prepare the current tax worksheet for the year ended 30 June 2022. (5 Marks)
2. Record the journal entries for current tax. Narrations are not required. (1 Mark)
3. You are preparing the deferred tax worksheet for the year ended 30 June 2022 as shown below. What should be the amount for each of the cells from [1] to [12]? (3 Marks)
4. Record the journal entries for deferred tax. Narrations are not required. (1 Mark)

VIC Ltd

Deferred Tax worksheet as at 30 June 2022

	Carrying Amount	Future Deductible Amount	Tax Base	Taxable Temporary Differences	Deductible Temporary Differences
	$	$	$	$	$
Relevant Assets
Accounts receivable	9 000	0	12,000		3 000
Motor vehicle (net)	4 000	0	[1]	[2]
Equipment (net)	40 000	25 000	[3]	[4]
Relevant Liabilities
Interest payable	1 000	1 000	[5]		[6]
Provision for annual leave	4 500	4 500	[7]		[8]
Total Temporary differences				?	?
Excluded differences				-	-
Temporary differences				?	?
Deferred tax liability				[9]
Deferred tax asset					[10]
Beginning balances				[11]	[12]
Movement during year				-	-
Adjustment