Q1. A Ltd commences operations on 1 July 2018 and presents its first statement of profit or loss and other comprehensive income and first statement of financial position on 30 June 2019. The statements are prepared before considering taxation. The following information is available: Statement of profit or loss and other comprehensive income for the year ended 30 June 2019 Gross profit Expenses 600 000 Administration expenses 100 000 Salaries 55 000 10 000 20 000 75 000 10 000 270 000 Long-service leave Warranty expenses Depreciation expense-plant Insurance Profit before tax Other comprehensive income Total comprehensive income Assets and liabilities as disclosed in the statement of financial position as at 30 June 2019 330 000 - 330 000 Assets Cash 30 000 80 000 Inventory Accounts receivable 90 000 4 000 Prepaid insurance Plant-cost 300 000 less Accumulated depreciation 75 000 225 000 429 000 Total assets Liabilities 50 000 Accounts payable Provision for warranty expenses 15 000 154 000 Loan payable Provision for long-service leave expenses 10 000 Total liabilities 229 000 Net assets 200 000 Other information All administration and salaries expenses incurred have been paid as at year end. None of the long-service leave expense has actually been paid. It is not deductible until it is actually paid. Warranty expenses were accrued and, at year end, actual payments of $5000 were made leaving an accrued balance of $15 000). Deductions are available only when the amounts are paid, and not as they are accrued. Insurance was initially prepaid to the amount of $14000. At year end, the unused component of the prepaid insurance amounted to 54000. Actual amounts paid are allowed as a tax deduction. Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. The plant is depreciated over four years for accounting purposes, but over three years for taxation purposes. The tax rate is 30 per cent. Table 1 Extract from accounting balance sheet ($) Tax bases ($) Deductible temporary differences ($) Taxable temporary differences ($) Assets Cash 30 000 Accounts receivable 90 000 80 000 Inventory Prepaid insurance Plant-net of depreciation 4 000 225 000 429 000 Liabilities Accounts payable Provision for warranty Provision for long service leave 50 000 15 000 10 000 Loan 154 000 229 000 Net assets 200 000 REQUIRED (a) Calculating taxable profit by making adjustments to accounting profit. (b) Calculating deferred tax liability and deferred tax asset of the A Ltd on 30 June 2019. (c) Complete Q1 - Table 1. (d) Provide the journal entries at 30 June 2019 to account for tax in accordance with AASB 112. [Marks = 16]