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ShouldBeMyOwnWork Ltd had the following balances in their books showing Carrying Amount and Tax Base amounts at 30 June 2018 which creates temporary differences: The
ShouldBeMyOwnWork Ltd had the following balances in their books showing Carrying Amount and Tax Base amounts at 30 June 2018 which creates temporary differences: The following information is available for the following year, the year ending 30 June 2019. ShouldBeMyownWork Ltd depreciates computers over five years in its accounting records, but over three years for tax purposes. The straight-line method is used. During the year, ShouldBeMyOwnWork Ltd wrote off bad debts amounting to $15, 000. Warranty costs of $70, 000 were paid during the year. No amounts were paid for long-service leave during the year. The following information is extracted from the statement of financial position at 30 June 2019: There was no acquisition of plant and equipment during the year. The tax rate as at 30 June 2018 and 30 June 2019 was 30 per cent Required: a) Calculate the amount of each of ShouldBeMyOnwork Ltd's temporary differences, if any, at 30une 2018, and state whether it is deductible or taxable b) What is the balance of the deferred tax liability and deferred tax asset, if any, as at 30 June 2018? c) Calculate ShouldBeMyOwnWork Ltd's taxable income for the year ending 30 June 2019. d) Prepare journal entries to record current tax and deferred tax for the year ending 30 June 2019
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