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The accounting profit before tax for Surfers Ltd for the period ended 30 June 2024 was $175,900. It included the following income and expense items.
The accounting profit before tax for Surfers Ltd for the period ended 30 June 2024 was $175,900. It included the following income and expense items. The draft statement of financial position as at 30 June 2024 included the following assets and liabilities. Additional Information - The tax depreciation rate for plant is 10% straight line. - The tax rate is 30% - The company has $15,000 in tax losses carried forward from the previous year. A deferred tax asset was recognised for these losses in the previous year. Taxation legislation allows such losses to be offset against future taxable profits. Required: Calculate the taxable income, current tax liability for the year and create the tax liability journal. In a worksheet calculate the temporary difference from the information given above. Prepare the journal entries for the deferred tax asset and deferred tax liability
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