Question
QUESTION 1 (8 Marks) Bellago Ltd made an accounting profit before tax of $95,000 for the year ended 30 June 2022.The following items were included
QUESTION 1 (8 Marks) Bellago Ltd made an accounting profit before tax of $95,000 for the year ended 30 June 2022.The following items were included in the accounts: Donations to political parties , non-deductible 4,000 Depreciation machinery, 20% 15,000 Annual leave expense 5,800 Rent revenue 8,000 Estimated bad debt expense 21,000 Goodwill amortised, non-deductible 12,000 For tax purposes the following applied: Depreciation rate for machinery 15% Annual leave paid 4,500 Rent received 42,000 Bad debt written off 16,000 Income tax rate 30% Required i. Calculate the current tax liability for the year ended 30 June 2022. ii. Prepare the journal entries.
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