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 1. Calculate the current tax liability for the year ended 30 June 2023. 2. Complete a worksheet showing the deferred tax balances for the year ended 30 June 2023. 3. Complete the relevant general journal entries to record deferred tax assets and liabilities at 30 June 2023. 4. Prepare an extract from the statement of comprehensive income showing profit before tax, income tax expense and profit after tax for the year ended 30 June 2023. Prepare an extract from the statement of financial position showing any income tax assets and liabilities at 30 June 2023. 5. Tax rate is 30%. Written Questions 6. Are all differences that exist at the end of the reporting period between the carrying amount and tax bases of assets and liabilities recognised as part of deferred tax assets or deferred tax liabilities? Explain. 7. Despite the fact that deferred tax liabilities and assets are recognised in respect of certain assets and liabilities, the income tax expense (or revenue) of such items is always recognised in the current year. Discuss if this statement is true and provide reasons for your choice