ReedLtd is a manufacturer ofsurfboardswhich commenced operations on 1 July 2018. The Statement of Comprehensive Income and the Statement of Financial Position were compiled on 30 June 2020. The following information was available:

Statement of Comprehensive Income for the year ended 30 June 2020

$$

Sales 750,000

Interest revenue 98,000

Less

Cost of Goods Sold 220,000

Administrative expense 20,000

Warranty expense 50,000

Depreciation- machine 120,000

Insurance expense 30,000 440,000

Profit before income tax

408,000

Following information was extracted from the Statement of Financial Position at 30 June 2020:

2019 2020

Prepaid insurance 27,000 56,000

Interest receivable 46,000 53,000

Machine 750,000 750,000

Less: Accumulated depreciation 150,000 300,000

Provision for warranty 73,000 89,000

Revenue in Advanced 65,000 87,000

Other information was available for the year ended 30 June 2020:

1. Sales are recorded for income tax purpose at the time the sales are made.
2. Cost of Goods Sold and administrative expense incurred have been paid. They are allowed as a tax deduction at the year end.
3. Warranty expense was accrued. Deduction for income tax purpose is available only when the amount is paid.
4. The machine was purchased two years ago at a value of$750,000. Itis depreciated evenly over its useful life and ithas no residual value. The useful life is fiveyearsbased onaccounting policy, but it is depreciated over ten years according tothe taxation rule.
5. Insurance is allowed as a tax deduction when it is paid.
6. Service provided related to revenue in advance is $32,000.
7. Interest is accrued every year. Interest for income tax purpose is only when the amount is received.
8. Incometax rate is 30%.

Required:(Narrations arenotrequired in this question)

1. Determine the amount of taxable income for the year ended 30 June 2020.
2. Determine the amount of income tax expense for the year ended 30 June.
3. Prepare a journal entry to record current tax liabilityon 30 June.
4. Determine the amount of carrying amount and tax base for machine.
5. Determine the amount of temporary difference for machine.
6. State whether the temporary difference for machine isdeductible or taxable, and explain.