Son House Ltd earned Taxable Income of $2,800,000, for the financial year ended 31 December 2019.

Additional Information:

(i) On 1 January 2016, Son House Ltd purchased a machine at a cost of $3,000,000. For accounting purposes, the machine is depreciated on a straight line basis over 12 years, with zero residual value. For tax purposes, the machine is depreciated 10% on cost per annum.

(ii) On 30 June 2017, Son House Ltd purchased land at a cost of $1,400,000. On 31 December 2019, the land was revalued to $1,850,000.

(iii) On 31 December 2018, the balance of the Long Service Leave Liability was $1,100,000. During the financial year ended 31 December 2019, Son House Ltd provided $130,000 for Long Service Leave, and paid Long Service Leave benefits of $290,000. For income tax purposes, Long Service Leave is deductible when it is paid.

(iv) The company income tax rate is 30%.

REQUIRED: (a) Calculate the balance of the deferred tax assets and deferred tax liabilities at 31 December 2018 and 31 December 2019 for Son House Ltd, in accordance with AASB112: Income Taxes. Show all workings necessary to derive your answer.

(b) Prepare the journal entry for Son House Ltd, to record income tax for the financial year ending 31 December 2019, in accordance with AASB112: Income Taxes. Show all workings necessary to derive your answer.