The following information is available for Sir Handel Limited for the financial year ended 30 June 2018 Adjusting entries are recorded only at the end of the financial year Complete the following table Events Entry(ies) for accounting Carrying Amount Tax Base Temporary difference taxable or deductible 1) Purchased a machine for $280,000 cash on 1 July 2015 Depreciate over 10 years for accounting and 7 years for tax Assume nil residual Depreciation expense Machine Acc Depn Machine Acc Depn 2) Received $96,000 on 1 June 2017 for services to be performed equally over the next four years For taxation purposes revenue is taxable when received 3) Prepaid two years insurance for $36,000 on 1 February 2018 Deductible for tax when paid The opening balance in prepaid insurance is nil 4) The balance of a cs receivable on 30 June 2018 is $140,000 and the balance in the allowance for bad debts is $21,000 credit These balances are after recording bad debt write offs of $22,000 and the estimate of bad debts of $18,000 Revenue is taxable when goods are sold For taxation a deduction is only allowed for debts written off 5) The firm accrued $35,000 sick leave during 2018 Sick leave taken during the year was $30,000 For taxation a deduction is only allowed when sick leave is paid The opening balance in the provision for sick leave is $28,000 Required Show all workings 1) Complete the table by recording entries for accounting and tax purposes for the financial year ending 30 June 2018 Determine the specified balance sheet amounts for accounting and tax purposes and calculate the (temporary) difference stating whether it is deductible or taxable 2) Profit before tax is $182,500 Included in this amount is research expense of $40,000 The taxation office allows firms to claim a 150 deduction for research Using all information (i e including from the table above) calculate Sir Handel Limiteds taxable income 3) Provide entries to record current and deferred tax assuming a tax rate of 30 and a $44,100 opening balance in the deferred tax asset account and a $10,800 opening balance in the deferred tax liability account

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The following information is available for Sir Handel Limited for the financial year ended 30 June 2018. Adjusting entries are recorded only at the end

The following information is available for Sir Handel Limited for the financial year ended 30 June 2018. Adjusting entries are recorded only at the end of the financial year. Complete the following table.

Events	Entry(ies) for accounting	Carrying Amount	Tax Base	Temporary difference taxable or deductible?
1) Purchased a machine for $280,000 cash on 1 July 2015. Depreciate over 10 years for accounting and 7 years for tax. Assume nil residual.	Depreciation expense	Machine - Acc Depn	Machine - Acc Depn
2) Received $96,000 on 1 June 2017 for services to be performed equally over the next four years. For taxation purposes revenue is taxable when received.
3) Prepaid two years insurance for $36,000 on 1 February 2018. Deductible for tax when paid. The opening balance in prepaid insurance is nil.
4) The balance of a/cs receivable on 30 June 2018 is $140,000 and the balance in the allowance for bad debts is $21,000 credit. These balances are after recording bad debt write-offs of $22,000 and the estimate of bad debts of $18,000. Revenue is taxable when goods are sold. For taxation a deduction is only allowed for debts written-off.
5) The firm accrued $35,000 sick leave during 2018. Sick leave taken during the year was $30,000. For taxation a deduction is only allowed when sick leave is paid. The opening balance in the provision for sick leave is $28,000.

Required [Show all workings]

1) Complete the table by recording entries for accounting and tax purposes for the financial year ending 30 June 2018. Determine the specified balance sheet amounts for accounting and tax purposes and calculate the (temporary) difference stating whether it is deductible or taxable.

2) Profit before tax is $182,500. Included in this amount is research expense of $40,000. The taxation office allows firms to claim a 150% deduction for research. Using all information (i.e. including from the table above) calculate Sir Handel Limiteds taxable income.

3) Provide entries to record current and deferred tax assuming a tax rate of 30% and a $44,100 opening balance in the deferred tax asset account and a $10,800 opening balance in the deferred tax liability account.