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Part A wwwwwwww Doctor C. Galadriel, CEO of Middle-earth Hospital has asked you for help with her deferred tax. Middle-earth Hospital started operations on 1
Part A wwwwwwww Doctor C. Galadriel, CEO of Middle-earth Hospital has asked you for help with her deferred tax. Middle-earth Hospital started operations on 1 April 2021, and for the year ending 31 March 2022, made an accounting profit that is the last six digits of your student ID number. The tax rate is 28%. The following information was also provided to you: As at the end of the 2022 financial year Middle-earth Hospital has a 4 year-old portable x-ray machine. The machine cost $60,000 and is depreciated over a total useful life of 25 years. For tax purposes the machinery is fully depreciated using a 5% depreciation rate. wwwwww Middle-earth Hospital rents iPads for staff to make medical assessments. At 31 March 2022, $4,000 was paid in advance for the next year. Tax deductions for this item are available for amounts paid. At the start of the year there was no provision for warranties on medical procedures, but of $8,000 was paid out during the year and the warranties expense for the year was $18,000. Tax deductions for this item are available for amounts paid. There were entertainment expenses incurred and paid of $11,000. For tax purposes only 50% of the amount paid for entertainment expenses are tax deductible. $5,000 of bad debts were written off during the year and the balance at the end of the year was $9,000. Tax deductions for this item are available when debts are written off. Required: Fill in the current tax worksheet and deferred tax worksheet below. Current tax worksheet (20 marks)
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