Question 4 (7 marks) On 1 July 2017, Bright Star Ltd was incorporated. The accounting profit and other relevant information of Bright Star for the two years to 2019 are as follows:

2019	2018
Profit before tax	$4 500 000	$3 600 000
Warranty expense		1500 000
Depreciation expense machinery	60 000	60 000
Gain on sale of machinery for accounting
Warranty paid	750 000
Tax depreciation machinery	90 000	90 000
Gain on sale of machinery for tax
Provision for warranty carrying amount	750 000	1500 000
Provision for warranty tax base
Machinery carrying amount	180 000	240 000
Machinery tax base	120 000	210 000

The company tax rate is 30%. Required (a) Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 (4 marks) (b) Prepare the required tax journal entries for each year. (3 marks)