tax rate will be 30%
3. Tax worksheet and journal entries: Greenstone Ltd (Prepared by J Campbell - adapted) Greenstone Ltd is listed on the Australian Stock Exchange and complies with AASB 112 Income Taxes. For the year ended 30 June 2019, Greenstone earned profit before income tax of $1,200,000. The following information is available. Revenues/expenses included in Greenstone's before-tax profit in 2018-2019: Exempt income (not assessable for income tax) $360,000 Rent expense 310,000 Depreciation expense machinery 400,000 Depreciation expense computer equipment 300,000 Warranty expense 550,000 Other Information: 1. Rent is an allowable deduction for tax purposes when cash is paid. $400,000 was paid in the year ended 30 June 2019. 2. Machinery was acquired on 1 July 2014 for $3,200,000. Machinery was depreciated on the straight-line basis over 8 years for accounting purposes and over 4 years for income tax purposes. 3. Computer equipment was acquired on 1 July 2017 for $900,000 and depreciated on the straight-line basis over 3 years for accounting purposes and over 5 years for income tax purposes. 4. Warranty claims are allowed as a deduction for tax purposes when cash is paid for the expenses of meeting warranty claims. $420,000 was paid in the year ended 30 June 2019. 5. Unearned revenue of $200,000 was received in cash in June 2019 and was included in assessable income for tax purposes in the 2018-2019 year. Required: Write a journal entry to record current income tax for the year ended 30 June 2019. Show all calculations. 3. Tax worksheet and journal entries: Greenstone Ltd (Prepared by J Campbell - adapted) Greenstone Ltd is listed on the Australian Stock Exchange and complies with AASB 112 Income Taxes. For the year ended 30 June 2019, Greenstone earned profit before income tax of $1,200,000. The following information is available. Revenues/expenses included in Greenstone's before-tax profit in 2018-2019: Exempt income (not assessable for income tax) $360,000 Rent expense 310,000 Depreciation expense machinery 400,000 Depreciation expense computer equipment 300,000 Warranty expense 550,000 Other Information: 1. Rent is an allowable deduction for tax purposes when cash is paid. $400,000 was paid in the year ended 30 June 2019. 2. Machinery was acquired on 1 July 2014 for $3,200,000. Machinery was depreciated on the straight-line basis over 8 years for accounting purposes and over 4 years for income tax purposes. 3. Computer equipment was acquired on 1 July 2017 for $900,000 and depreciated on the straight-line basis over 3 years for accounting purposes and over 5 years for income tax purposes. 4. Warranty claims are allowed as a deduction for tax purposes when cash is paid for the expenses of meeting warranty claims. $420,000 was paid in the year ended 30 June 2019. 5. Unearned revenue of $200,000 was received in cash in June 2019 and was included in assessable income for tax purposes in the 2018-2019 year. Required: Write a journal entry to record current income tax for the year ended 30 June 2019. Show all calculations
