Section 0 Current Tax and Deferred Tax Computation iiou are reouired to identify:r the difference between profit or loss for amounting purpose and prot or loss for tax purpose. You are also required to demonstrate the understanding of how deferred tax assets and deferred liabilities arise and how they:I are calculated. Hunter Ltd is a Victorian-based truck manufacturer. It started its business on 1 .iuiv 2015. "the income statement for the year ended 50 June 201? and the extract of the statements of nancial position of Hunter Ltd for the vear ended 30 June 2015 and 50 June 201? are provided in the next page. The Statement of Financial Performance reports a profit before tax of $252,225 for the year ended 30 June 201?. The Statement of Financial Performance for use Er ended 30 June 2012 m 51,044,350 Sales Revenue $561,550 Service Revenue 23,000 Government Grant 5,000 nses Administration expenses $25,000 Salaries 55,000 Long service-leave 22,000 Interest Expense 11,000 Bad debt expense 2,500 Depreciation expenses Equipment 25,825 Depreciation expenses 2 Building 55,250 Entertainment Expense 12,000 Impairment of goodwill 0,000 Insurance 28,000 231,525 Accounting prot before tax 252,225 The Statement at Fin-mlal Posttinn as at aniline 2015 and Salon: 2017 2011 ms Assets S S Cash 7,000 55,000 Inventory 43,000 32,000 Remivabies Less allowance for doubtful debts 28,000 ZTMJU Prepaid Insurance 3,000 2,105 Equipment cost less accumulated depreciation 161,250 188,125 Building 7 cost less accumulated depreciation 337,500 393,750 Land 230,000 Goodwill 5,000 Ttal Assets 315,792 lJ-blltlies Account Payable 42,000 Aocmed Interests 15,000 Aoenied Wages 20,500 Uneamed service revenue 37,010 Provision for long service leave 12,000 9,000 Loan payable 100,000 100,000 Total Iiahileies mgm M NH Assets m m Additional information: 1. servioe revenue recognized during the year has amounted to $7s,000. lnmme is rained when cash is received. The cost ufthe equipment is $215,000. Taxa 'nn ofce generally altows Iiiistype ol assetto be depreciated uuer years. Hunter Lbd acquired a parcel of land at the donut $100,000 on Univ, 2015. The land was revalued to its lairvalue ul$230,000 as at 30June 2017. All administration expenses incurred fertile yearwere tulty paid at30 June 2016 and 30 June 2017. Actual amuuntpaid on insurance is allowable for deduction. Interest expenses and salaries expense are allowed for deduction end] when they are paid. impairment at goodwill and depreciation of building are not allowable rar dedueiion. Entertainment expenses are nunillcrwa ble deductian for tax purpose Government grant is an enemot income tartar: purpose. There was no deferred tax Fortiie year ended 30 June 201.5. The talible income lorsoal year ending 30 June 2016 was $350,000. 111! [all Rite was 3996 fDFU'IE year ended 39 lure 2015 and in June 2517. Papewls W A. Prepare a la: reconciliation In ralauiame ulrrent tax liability fordie year ended an :une 2011. I. Create a Taxation Wodrsheet l'ordiie year ended 301une 2016 in accordance withNLSB 112: innanie Taxes, and pieparetlie appliabiejoumai entry or nish remrd raeexpa-oe, current lax liability, defen'ed taxliabilitia ant deterred tax melts fur the year ended II June 2016, including ottsettingdie deterred tax. Cleate a Taxitin Worksheet fnrle year Ended iJunE 2017 in illnrdallmwttllm 112: lnoomeTaxes, and prepare the applicabiejoumai entry or emris to record tax expense, current tax liability, deterred tax liabilities. deterred taxassets and tax-etiect tor revaluation fertile year ended 30 Jun 2017. [H1- M + M = U ml Sidsmlsdnnlmh-ucdms This assignment is to be submitted ONIJNE ONLYKYou are NOT required 00 sub'nit a hard mprlr . irou mustty'pe inyouransiuermdie Plath-aria provided. unmaihnniedonde menm it will not be marked. . The completed assignmenl question must be submitted into the allocated area on (loudDeakin underthe Whiter. . This '5 an individual submission. . You are not required In upload anAssigi-imenimverslieei. You will oompleiea qugjarisrn declaration whenyou 20055 the Droobox. . onie submitted you cannot take your assignment leak em you aim SHIM" anodier version. The most "version nib-littlest will be marked. . when uploading your assignmenl, give the dooiineni a name using die following syntax:
