The following information relates to Zara Ltd.'s expenses and profits. Assuming the company tax rate is 309.

Required:

Calculate the taxable income and the current tax liability for 30th of june 2021. Also write journal entry

Accounting Profit

$

290,000

17 points

After debiting as an expense

• Depreciation of plant and equipment
• Long service leave expense
• Doubtful debts expense
• Goodwill impairment

57

17000

8000

4000

2000

Additional information:

Tax depreciation allowed on plant and equipment is $19 500

Amounts paid during the year for long service leave amounted to $5 500.

Bad debts written off during the year amounted to 5 1 500