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3. PAYG income tax instalments paid during the year were: $7000 30 September 20x7 31 December 20X7 31 March 20X8 $9000 $6400 4. The income tax rate is 30%. Required: a) Prepare a statement of taxable income. b) Calculate the total tax payable. c) Show the general journalentry necessary to record income tax expense and tax payable for the year. Submit in Excel Calculating tax base - assets (7 points) Calculate the tax base at the end of the tax year (30 June) for various assets in the following unrelated circumstances. Show your calculations in the worksheet provided at the end of the question. State if the item is a deferred tax asset (DTA) or a deferred tax liability (DTL). a) Accounts receivable has a balance of $41000. There is an allowance for doubtful debts totalling $7000. b) Expenses prepaid are $3000. This amount was deemed as a deduction when paid. c) Machinery cost $60000 on July 20x1.It is depreciated for both accounting and taxation purposes by $9000 per year. What is the tax base at 30 June 20X4? d) Loan receivable has a balance of $59000. It is expected to be collected in full. e) Machinery cost $150000 on IJuly 20X4. For accounting purposes, it is depreciated at 25% per annum (no scrap value). Fortaxation purposes, it is depreciated at 33%. What isthe taxbase at 30 June 20X6? f) Commission income accrued is $1400. Amount is for commission earned but not received. It will not be included in taxable income until it is received. Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- line method. What is the tax base at 30June 20X5 (that is, at end ofthe second year)? Worksheet format for answers - Any Asset Any future future carrying Less plus deductable Equals taxable amount amounts amounts (8 points) Net profit before taxation is $75000. The profit and loss account includes the following expenses not allowable as taxation deductions: 8 000 3 000 Entertainment expenses Transfer to doubtful debts allowance Transfer to long service leave provision An extract from the balance sheet reveals: 5 000 Carrying amount Tax base Assets Accounts receivable (net) 72000 75000 Liabilities Provision for long service leave 5 000 Nil The tax rate is 30%. PAYG instalments already remitted to the ATO amount to $20 000. Required: a) Prepare a statement oftaxable income. b) Prepare the genera/journal entries to record income tax expense and the temporary difference. 3. PAYG income tax instalments paid during the year were: 30 September 20x7 31 December 20X7 31 March 20X8 $7000 $9000 $6400 4. The income tax rate is 30%. Required: a) Prepare a statement of taxable income. b) Calculate the total tax payable. c) Showthe general journal entry necessary to record income tax expense and tax payable for the year. Submit in Excel Calculating tax base-assets (7 points) Calculate the tax base at the end of the tax year (30June) for various assets in the following unrelated circumstances. Show your calculations in the worksheet provided at the end of the question. State if the item is a deferred tax asset (DTA) or a deferred tax liability (DTL). a) Accounts receivable has a balance of $41000 There is an allowance for doubtful debts totalling $7000. b) Expenses prepaid are $3000. This amount was deemed as a deduction when paid. c) Machinery cost $60000 on July 20x1.Itis depreciated for both accounting and taxation purposes by $9000 per year. What is the tax base at 30 June 20X4? d) Loan receivable has a balance of $59000. It is expected to be collected in full. e) Machinery cost $150000 on July 20X4.For accounting purposes, it is depreciated at 25% per annum(no scrapvalue). Fortaxation purposes, it is depreciated at 337%. What is the tax base at 30 June 20X6? f) Commission income accrued is $1400. Amount is for commission earned but not received. It will not be included in taxable income until it is received. g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- line method. What is the tax base at 30June 20X5 (that is, at end of the second year)? Worksheet format for answers Any Asset Any future future carrying Less plus deductable Equals amount taxable amounts amounts (8 points) Net profit before taxation is $75000. The profit and loss account includes the following expenses not allowable as taxation deductions: Entertainment expenses 8 000 Transfer to doubtful debts 3 000 allowance Transfer to long service leave 5 000 provision An extract from the balance sheet reveals: Carrying Tax amount base Assets Accounts receivable (net) 72000 75000 Liabilities Provision for long service leave 5000 Nil The tax rate is 30%. PAYG instalments already remitted to the ATO amount to $20 000. Required: a) Prepare a statement of taxable income. b) Prepare the genera/journal entries to record income tax expense and the temporary difference 3. PAYG income tax instalments paid during the year were: $7000 30 September 20x7 31 December 20X7 31 March 20X8 $9000 $6400 4. The income tax rate is 30%. Required: a) Prepare a statement of taxable income. b) Calculate the total tax payable. c) Show the general journalentry necessary to record income tax expense and tax payable for the year. Submit in Excel Calculating tax base - assets (7 points) Calculate the tax base at the end of the tax year (30 June) for various assets in the following unrelated circumstances. Show your calculations in the worksheet provided at the end of the question. State if the item is a deferred tax asset (DTA) or a deferred tax liability (DTL). a) Accounts receivable has a balance of $41000. There is an allowance for doubtful debts totalling $7000. b) Expenses prepaid are $3000. This amount was deemed as a deduction when paid. c) Machinery cost $60000 on July 20x1.It is depreciated for both accounting and taxation purposes by $9000 per year. What is the tax base at 30 June 20X4? d) Loan receivable has a balance of $59000. It is expected to be collected in full. e) Machinery cost $150000 on IJuly 20X4. For accounting purposes, it is depreciated at 25% per annum (no scrap value). Fortaxation purposes, it is depreciated at 33%. What isthe taxbase at 30 June 20X6? f) Commission income accrued is $1400. Amount is for commission earned but not received. It will not be included in taxable income until it is received. Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- line method. What is the tax base at 30June 20X5 (that is, at end ofthe second year)? Worksheet format for answers - Any Asset Any future future carrying Less plus deductable Equals taxable amount amounts amounts (8 points) Net profit before taxation is $75000. The profit and loss account includes the following expenses not allowable as taxation deductions: 8 000 3 000 Entertainment expenses Transfer to doubtful debts allowance Transfer to long service leave provision An extract from the balance sheet reveals: 5 000 Carrying amount Tax base Assets Accounts receivable (net) 72000 75000 Liabilities Provision for long service leave 5 000 Nil The tax rate is 30%. PAYG instalments already remitted to the ATO amount to $20 000. Required: a) Prepare a statement oftaxable income. b) Prepare the genera/journal entries to record income tax expense and the temporary difference. 3. PAYG income tax instalments paid during the year were: 30 September 20x7 31 December 20X7 31 March 20X8 $7000 $9000 $6400 4. The income tax rate is 30%. Required: a) Prepare a statement of taxable income. b) Calculate the total tax payable. c) Showthe general journal entry necessary to record income tax expense and tax payable for the year. Submit in Excel Calculating tax base-assets (7 points) Calculate the tax base at the end of the tax year (30June) for various assets in the following unrelated circumstances. Show your calculations in the worksheet provided at the end of the question. State if the item is a deferred tax asset (DTA) or a deferred tax liability (DTL). a) Accounts receivable has a balance of $41000 There is an allowance for doubtful debts totalling $7000. b) Expenses prepaid are $3000. This amount was deemed as a deduction when paid. c) Machinery cost $60000 on July 20x1.Itis depreciated for both accounting and taxation purposes by $9000 per year. What is the tax base at 30 June 20X4? d) Loan receivable has a balance of $59000. It is expected to be collected in full. e) Machinery cost $150000 on July 20X4.For accounting purposes, it is depreciated at 25% per annum(no scrapvalue). Fortaxation purposes, it is depreciated at 337%. What is the tax base at 30 June 20X6? f) Commission income accrued is $1400. Amount is for commission earned but not received. It will not be included in taxable income until it is received. g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- g) Machinery cost $80000 on 1 July 20X3. For accounting purposes, it is depreciated at 25% per annum (straight-line method). For taxation purposes, it is depreciated at 20% by the straight- line method. What is the tax base at 30June 20X5 (that is, at end of the second year)? Worksheet format for answers Any Asset Any future future carrying Less plus deductable Equals amount taxable amounts amounts (8 points) Net profit before taxation is $75000. The profit and loss account includes the following expenses not allowable as taxation deductions: Entertainment expenses 8 000 Transfer to doubtful debts 3 000 allowance Transfer to long service leave 5 000 provision An extract from the balance sheet reveals: Carrying Tax amount base Assets Accounts receivable (net) 72000 75000 Liabilities Provision for long service leave 5000 Nil The tax rate is 30%. PAYG instalments already remitted to the ATO amount to $20 000. Required: a) Prepare a statement of taxable income. b) Prepare the genera/journal entries to record income tax expense and the temporary difference
