Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The accounting profit before tax of Sahara Ltd for the year ended 30 June 2020 was $150 000. The following information is taken from the

image text in transcribed

image text in transcribed

The accounting profit before tax of Sahara Ltd for the year ended 30 June 2020 was $150 000. The following information is taken from the financial statements for Sahara Ltd for the year ended 30 June 2020 Extract from the Income statement was as follows: Government grant (non-taxable) $ 50 000 Depreciation expense - plant $ 20 000 Long service expense $ 10 000 The draft statement of financial position as at 30 June 2020 included the following assets and liabilities: 2020 ($) 2019 ($) 50 000 30 000 200 000 0 Cash Plant Accumulated depreciation - plant Deferred tax asset Provision for long service leave Deferred tax liability 200 000 (20 000) ? 30 000 0 50 000 ? Additional information: The tax depreciation rate for plant is 20% per annum using the straight-line method. The tax rate is 30% Required: a) What is the amount of Current Tax Payable by Sahara Ltd for the year ended 30 June 2020? Please provide a numerical value without any sign ($. + or -) or space. (3 marks) b) What is the amount of Deferred Tax Liability that would be recognised by Sahara Ltd in their statement of financial position at 30 June 2020? Please provide a numerical value without any sign ($. +or) or space. (3 marks) What is the amount of Deferred Tax Asset that would be recognised by Sahara Ltd in their statement of financial position at 30 June 2020? Please provide a numerical value without any sign ($.+ or -) or space

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0697789938

Students also viewed these Accounting questions

Question

LO 13 Where do psychologists work?

Answered: 1 week ago