The financial statements of Sparky Ltd for the year ended 30 June 2016 report a profit before tax of $7 000. Included in the profit are the following items of income and expense: $ Government grant 8 000 Rent revenue 13 000 Bad debts expense 6 100 Interest expense 25 000 Insurance expense 17 900 Depreciation expense - vehicle Long service leave expense 8 000 18 500 An extract of the comparative statement of financial position for 30 June 2016 is below: 2016 2015 $ $ 79 000 82 000 (11 000) 8 500 Accounts receivable Allowance for doubtful debts Prepaid insurance Rent receivable Vehicle Accumulated depreciation - vehicle Interest payable Provision for long service leave (9 000) 9 100 35 000 80 000 (24 000) 21 000 12 400 30 000 80 000 (16 000) 25 000 16 000 Additional information: The tax deduction for depreciation on vehicle for 30 June 2016 is $16 000. Accumulated depreciation on vehicle for tax purposes at 30 June 2015 was $32 000. On 1 July 2015 the Deferred Tax Asset had a balance of $13 400 and the Deferred Tax Liability had a balance of $12 500 The tax rate is 30% Required a) Prepare the current tax worksheet for the year ended 30 June 2016 and record the journal entry needed for current tax. b) Prepare the deferred tax worksheet using the worksheet provided on the last page of this exam, and record the journal entry to adjust the deferred tax liability and the deferred tax asset as at 30 June 2016