The accounting profit before tax for the year ended 30 June 2021 for Magnus Ltd amounted to $50 000 and included:

Depreciation equipment (20%)	20 000
Rent revenue	16 000
Royalty revenue (non-taxable)	4 000
Doubtful debts expense	3 200
Entertainment expense (non-deductible)	1 800
Annual leave expense	8 000
Insurance Expense	5 000

The statement of financial position at 30 June 2021 contained the following assets and liabilities:

	2020	2021
Assets
Cash	8 000	12 500
Prepaid Insurance	5 000	8 000
Receivables	10 000	16 000
Allowance for doubtful debts	(2 000)	(3 500)
Inventories	19 000	21 000
Rent receivable	9 000	11 000
Equipment	100 000	100 000
Accumulated depreciation equipment	(20 000)	(40 000)
Deferred tax asset	3 000	?
	132 000	125 000
Liabilities
Accounts payable	25 000	17 000
Provision for annual leave	6 500	7 000
Deferred tax liability	2 000	?
	33 500	24 000

Additional information

(a) The company can claim a tax deduction of $25 000 (25%) for depreciation on equipment. The equipment is now two years old and the accounting rate is 20%.

(b) The company tax rate is 30%.

(c) The company has not paid any tax this year.

Required

1. Prepare the current tax worksheet and the journal entry to recognize the current tax as at 30 June 2021.

2. Prepare any necessary journal entries to adjust the deferred tax accounts at 30 June 2021. The use of the deferred tax worksheet is optional.