THE FOLLOWING INFORMATION RELATES TO QUESTION 22 and 23: The following information was extracted from the records of Amoeba Ltd, a company which started trading on 1 July 2014. 30.6.2015 30.6.2016 Accounts receivable $50,000 $80,000 Provision for doubtful debts ($7,000) ($10,000) $43,000 $70,000 Bad debts written off during the year ended 30.6.2015 and 30.6.2016 are $2,000 and $6,000 respectively. The company tax rate is 30%. Q. 22 On 30.6.2015, the company has: a) an allowable deduction of $7,000 in the income statement b) a lower income tax expense compared to income tax payable c) a higher income tax expense compared to income tax payable d) a taxable temporary difference of $7,000 e) a tax base of $43,000 THE FOLLOWING INFORMATION RELATES TO QUESTION 22 and 23: The following information was extracted from the records of Amoeba Ltd, a company which started trading on 1 July 2014. 30.6.2015 30.6.2016 Accounts receivable $50,000 $80,000 Provision for doubtful debts ($7,000) ($10,000) $43,000 $70,000 Bad debts written off during the year ended 30.6.2015 and 30.6.2016 are $2,000 and $6,000 respectively. The company tax rate is 30%. Q. 22 On 30.6.2015, the company has: a) an allowable deduction of $7,000 in the income statement b) a lower income tax expense compared to income tax payable c) a higher income tax expense compared to income tax payable d) a taxable temporary difference of $7,000 e) a tax base of $43,000