Q4 Accounting for Income Tax 13 Points The following information is relevant to questions 4:14.2 and 4.3. The accounting profit before tax af Carlton Ltd for the year ended 30 June 2020 IS $60 000 The following expenses have been incurred Doubtfuldebts expense Depreciation expense - machinery SI 000 550 000 The draft statement of financial position as at 30 June 2020 Includes the following assets and llabilities Cash Accounts receivable Allowance for doubtful debes Larventies Machinery Accumulated depreciation - machinery Land Deferred tax asset Accounts payable Defensed tax liability 2020 $8000 41 000 (2000) 67 000 200 000 (150.000 120 000 2019 $6 500 35 000 (1 700) 48 000 200 000 (100 0001 100 000 5 000 71000 60 000 0 Additional Information . For accounting purpose, the machinery is depreciated over 4 years using straight-line depreciation with residual value of zero. For tax purpose, the machinery is deprecated over 5 years using straight-line depreciation with residual value of zero. . The tax rate is 30%. . The company has $8 000 Intax losses carried forward from the previous year. A deferred tax asset was recognised for these losses. Taxation legislation allows such losses to be offset against future taxable profit. Land is revalued up by $20 000 for the year ended 30 June 2020. Q4.1 4 Points Prepare the current tax worksheet for the year ended 30 June 2020 and calculate the current tax liability Flere selectie Selectes 04.2 3 Paints Complete the following deferred tax woricsheet for the year ended 30 June 2020. FDA Carrying Am Tax B Detect Temporary Differences Tale Tempoy Differences Accorrevale Machty Flerze selectes Selectes Q4.3 4 Points List the journal entries that Cariton Ltd needs to maice to recognise the current tax and adjust deferred tax accounts as at 30 June 2020 Please select files Selectes Q4.4 2 Points Suppose the tax rate is likely to change from 30% to 25%. The new tax rate is expected to be substantively enacted at 30 June 2021. In accordance with AASB 12 Income Taxes, explain how Carlton Ltd should apply the new tax rate when it is changed [No calculation is required) Enter your answer here