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The CFO has asked you to calculate the taxable income and prepare journal entries for Moon Ltd at 30th June 2021. Accounting before tax
The CFO has asked you to calculate the taxable income and prepare journal entries for Moon Ltd at 30th June 2021. Accounting before tax 90,000 Goodwill impairment 10,000 Doubtful Debts. 4,000 Depreciation Equipment 10,000 Long service leave expense 6,000 Depreciation for tax - Plant.** 20,000 Bad debts written off. ** 10,000 Note These items ** are deductible for tax purposes Calculate (1) current tax liability for Moon Ltd (6 marks) (2) Prepare the journal entry to show this. (1 mark)
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