Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Plantation Ltd commenced business on 1 July 2022 with share capital of $562 000. The company purchased some non-current assets on that date. The details
Plantation Ltd commenced business on 1 July 2022 with share capital of $562 000. The company purchased some non-current assets on that date. The details of the non-current asset purchases are as follows:
Machinery | Vehicles | |
Cost | $400 000 | $75 000 |
Depreciation rate: | ||
Accounting | 20% | 25% |
Tax | 15% | 50% |
Method | Straight line | Straight line |
The statement of comprehensive income and statement of financial position for Plantation Ltd at year end were as follows:
Plantation Ltd
Statement of Comprehensive Income
for the year ended 30 June 2023
$ | $ | |
Revenues | 500 000 | |
Expenses | ||
Cost of sales | 175 000 | |
Depreciation on machinery | 80 000 | |
Depreciation on vehicles | 18 750 | |
Salaries and wages | 125 000 | |
Insurance | 10 000 | |
Annual leave | 14 000 | |
Rent of premises | 20 000 | |
Other expenses | 17 250 | 460 000 |
Profit before income tax | 40 000 |
Plantation Ltd
Statement of Financial Position
as at 30 June 2023
Assets | $ | $ |
Cash | 50 000 | |
Inventory | 150 000 | |
Accounts receivable | 80 000 | |
Prepaid insurance | 20 000 | |
Machinery | 400 000 | |
Less: Accumulated depreciation | 80 000 | 320 000 |
Vehicles | 75 000 | |
Less: Accumulated depreciation | 18 750 | 56 250 |
676 250 | ||
Liabilities | ||
Accounts payable | 50 250 | |
Rent payable | 10 000 | |
Provision for annual leave | 14 000 | 74 250 |
Net assets | 602 000 | |
Shareholders equity | ||
Share capital | 562 000 | |
Retained earnings | 40 000 | |
602 000 |
Required Calculation Questions
- Calculate the current tax liability for the year ended 30 June 2023.
- Complete a worksheet showing the deferred tax balances for the year ended 30 June 2023.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started