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Practical Question 1 - Accounting for Income Tax - Current Tax Worksheet - 9 Marks The profit before tax, as reported in the Statement of
Practical Question 1 - Accounting for Income Tax - Current Tax Worksheet - 9 Marks The profit before tax, as reported in the Statement of Profit or Loss and Other Comprehensive Income of Copper Ltd for the year ended 30 June 2022, amounted to $90,000 including the following revenue and expense items. Additional information: 1. Rent is allowed as a deduction when paid. Rent payable had an opening balance of $3,000 (June 2021) and a closing balance of $5,000 (June 2022). 2. Bad debts written off for the year were $1,000. 3. The deduction for depreciation for equipment for tax purposes was $10,000 more than the accounting depreciation expense. 4. Long service leave paid during the year was $1,000. 5. Insurance is prtpaid in advance and is allowed as a tax deduction when paid. Total payments for insurance until 30 June 2022 were $7,500. 6. The company spent $12,000 on development costs during the year ended 30 June 2022 which were recorded as an intangible asset on the balance sheet. However, the tax laws allow the company to claim the entire amount as a deduction in the current year. 7. The tax rate is 30%
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