SHOW YOUR CALCULATIONS - YOU NEED TO EXPLAIN HOW YOU GET EACH FIGURE

At 30 June 2017 the statement of Financial Position of Timing Limited included a deferred tax liability amounting to a credit balance R11 152. The deferred tax relates to the only item of equipment owned by the company.

The following information is relevant:

	Year ended 30 June
	2019 R	2018 R
Profit before taxation	282 000	252 000
Wear and tear allowance	40 000	50 000
Depreciation	48 000	48 000

Additional information:

• The tax base of the equipment at 30 June 2017 was R356 120.
• The current normal taxation for the year ended 30 June 2018 is paid on 30 June 2019. No other tax payments were made.
• There were no components of other comprehensive income
• The normal corporate tax rate for Timing Limited is 40%.

Required:

Show the journals relating to taxation depreciation for the years ended 30 June 2018 and 30 June 2019. You need to explain in details how you get each figure.