QUESTION 12

1. A Ltd reported the following information for the year ended 30 June 2018:

   Accounting profit before tax was 700 000.

   A building was purchased on 1 July 2015 for $600 000. It is depreciated at 10% straight-line with zero residual value for accounting purpose and 25% straight-line with zero residual value for tax purposes.

   Accounts receivable (gross): opening balance, 200 000; closing balance, 400 000. The allowance for doubtful debts: opening balance, 9 000; closing balance, 20 000. During the period, 6 000 bad debt were written-off.

   Provision for long service leave: opening balance, 40 000; closing balance, 30 000; Long-service-leave expense: 20 000.

   Company tax rate is 30%

   What is the ending balance of the Deferred Tax Liability account for the year ended 30 June 2018?