Part a. Tax Effect Accounting The accounting profit before tax of Melanie Ltd for the year ended 30 June 2016 amounted to $180,000, including the following revenue and expense items: 6,000 Government grant received 10,800 Entertainment costs 18,000 Doubtful debts expense Depreciation of plant 15,000 Long-service leave expense 13,500 The draft statements of financial position of the company at 30 June 2016 and 2015 showed the following assets and liabilities: MELANIE LTD Statement of Financial Position (Extract) as at 30 June 2016 2015 ASSETS Cash 24,000 25 500 Accounts receivable 150,000 144,000 Allowance for doubtful debts (16,500) (12 000) Inventory 102,000 93,000 Plant 150,000 150,000 Accumulated depreciation (78,000) (63,000) Goodwill (net) 42,000 42,000 Deferred tax assets 12 150 LIABILITIES Accounts payable Long-service leave payable Deferred tax liability 174,000 18,000 156,000 13,500 11, 430 Additional information: @ The government grant revenue is not assessable for tax purposes. Entertainment costs are not allowed as tax deductions. (b) Accumulated depreciation of plant for tax purposes was $94 500 at 30 June 2015, and depreciation for tax purposes for the year ended 30 June 2016 amounted to $22 500. (Assume a tax rate of 30%. Required Calculate taxable income and the company's current tax liability as at 30 June 2016, and prepare an appropriate end-of-period journal entry in order to recognise the current tax liability. Show all workings. (6 mks) Complete an extract of the deferred worksheet (4 mks)