Required: 1.Compute the taxable income or loss. (using excel spreadsheet) 2.Complete the Taxation Worksheet in accordance with AASB 112 Income Taxes. (using excel spreadsheet) 3.Prepare the applicable journal entries at 30 June 2021 to account for tax using the balance sheet method.

Thomastown Lid commences its operations on 1 July 2020. One year after the commencement of its operations (30 June 2021) the entity presents its first Statement of Comprehensive Income and Statement of Financial Position on 30 June 2021. The statements are prepared before considering taxation. The following information is available. Thomastown Ltd Statement of Comprehensive Income for the year ended 30 June 2021 s Gross Profit 13,440,000 1,411.200 1,008,000 336,000 Expenses Administrative expenses Salaries Provision for doubtful debts Long service leave Warranty expenses Depreciation expense - Machinery Depreciation expense - Building Insurance 672,000 403,200 536,000 160,000 369.GDO 4.986.000 8.454.000 Accounting profit for the year 4 Thomastown Ltd Assets and Liabilities as disclosed in the Statement of Financial Position for the year ended 30 June 2021 S S Assets Cash 272.000 1,008,000 1,540,800 Account Receivables (net) Inventory Prepaid insurance Machinery -cost Less Les accumulated depreciation 138,400 5,360,000 536.000 4,824,000 Building - cost Less accumulated depreciation 4,000,000 160.000 3.840,00 11,623,200 Total assets Llabilities Payables Provision for long service leave 1,075,200 Provision for warranty expenses 235,200 268,800 2,600,000 4.179.200 Bank loan Total liabilities Ner assets 7.444.000 Other information: Other information: . All administration and salaries expenses incurred have been paid as at year-end. Insurance was initially prepaid to the amount of $500,000. At the year-end, the unused component of the prepaid insurance amounted to 5138,400. Actual amounts paid are allowed as a tax deduction The amount of 5436,800 long service leave expense has been paid. 5 The machinery is depreciated over 10 years for accounting purposes, but over 8 years for taxation purposes The building is depreciated over 25 years for accounting purposes, but over 20 years for taxation purposes. Amounts received from sales, including those on creclit terms, are taxed at the time of the sale is made Warranty expenses were accrued and, at the year-end, actual payments of $134,400 had been made (leaving of accrued balance of 5268,800). Deductions for tax purposes are only available when the amounts are paid and not as they accrued. The tax rate is 30 per cent