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Q4 Income Tax 12 Points The following information is relevant to questions 4.1, 4.2, and 4.3. The accounting profit before tax of Footscray Baked Goods

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Q4 Income Tax 12 Points The following information is relevant to questions 4.1, 4.2, and 4.3. The accounting profit before tax of Footscray Baked Goods Ltd for the year ended 30 June 2021 is $155.000 Royalty Revenue (non-taxable) Long service leave expense Doubtful debts expense Depreciation expense - plant Entertainment expense (non-deductible) $ 5.000 8.500 5.100 50,000 10,000 The draft statement of financial position as at 30 June 2021 included the following assets and liabilities 2020 $ Cash Accounts receivable Allowance for doubtful debts Inventories Plant Accumulated depreciation - plant Deferred tax asset Accounts payable Provision for long service leave Deferred tax liability 2021 S 10.000 31,500 (4.500) 87,100 500,000 (200,000) 2 111,200 37,000 ? 8.500 28.400 (3.600) 68,300 500.000 (150,000) 15,000 73,600 35,000 9.600 Additional information The accounting depreciation rate for plant is 10% p.a., whereas the tax depreciation rate for plant is 20% p.a., both straight-line with residual value of zero. The tax rate is 30%. The company has $20,000 in tax 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. The company has already made income tax instalments of $5,000 for the year ended 30 June 2021. Q4.1 5 Points Prepare the Current Tax worksheet showing clearly the taxable profit after recoupment of tax loss for the year ended 30 June 2021 and the balance of current tax payable as at 30 June 2021 Please select file(s) Select files) Q4.2 3 Points Complete the following deferred tax worksheet for the items listed below for the year ended 30 June 2021 FTA FDA Carrying Amount Tax Base Deductible Temporary Differences Taxable Temporary Differences Accounts receivable Plant Provision for long service leave Please select file(s) Select files) Q4.3 4 Points List the journal entries that the entity needs to make to recognise the current tax and adjust deferred tax accounts for the year ended 30 June 2021. Please select file(s) Select file(s)

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