Question 1: (12 marks) At 30 June 2018, Gardyloo Ltd had the following deferred tax balances: Deferred tax liability balance 18,000 Deferred tax asset balance 15,000 Gardyloo Ltd recorded a profit before tax of $80 000 for the year to 30 June 2019, which included the following items: Doubtful debts expense 4,000 Rental income in advance 26,000 Long service leave expense 14,000 For taxation purposes the following amounts are allowable deductions for the year to 30 June 2019: Bad debts written off 2,000 Interest income (not yet received) 26,000 Additional Information: Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applie The plant was purchased at the beginning on 1st July 2017 at the cost of $100,000. The company estimates the asse useful life of 5 years using the straight-line method. The Australian Tax Office (ATO) allows a depreciation rate of 30 Additional Information: Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies The plant was purchased at the beginning on 1st July 2017 at the cost of $100,000. The company estimates the assets useful life of 5 years using the straight-line method. The Australian Tax Office (ATO) allows a depreciation rate of 30% straight line on cost. Long-service leave paid during the year was $2,000. Required A) Prepare a current tax worksheet to determine the taxable income for the year to 30 June 2019. B) Prepare all journal entries to account for income tax assuming recognition criteria are satisfied