The following information was extracted from the financial records of Slinky Ltd: machinery purchased on 1 January 2021 for $100,000 (accounting depreciation 20% straight line; tax depreciation 10% straight line). If the company tax rate is 30%, the deferred tax item that will be recorded by Slinky Ltd at 30 June 2021 is:

Select one:

a.

CR Deferred tax liability $1,500

b.

CR Deferred tax liability $3,000

c.

DR Deferred tax asset $3,000

d.

DR Deferred tax asset $1,500

After applying AASB112 Income Taxes, Jody Ltd disclosed the following: Income tax expense (Current) $20,500 (Dr) and Income tax expense (Deferred) $5,300 (Cr).

Jody Ltd had a profit before tax of $75,000. The company income tax rate is 30%.

The total for income tax expense that should be disclosed on the Statement of Profit or Loss and Other Comprehensive Income is:

Select one:

a.

$4,560 (Dr)

b.

$15,200 (Dr)

c.

$25,800 (Dr)

d.

$22,500 (Dr)

On 30 June 2020 Kally Ltd had the following balances: current tax liability of $23,000; deferred tax asset $12,000 (2019: $9,000); deferred tax liability $14,000 (2019: $8,000); and, profit and loss summary $42,000.

Assuming there are no other changes to the deferred tax accounts throughout the year, and the income tax rate is 30%, the total income tax expense that Kally Ltd will report in the Profit or Loss and Other Comprehensive Income Statement for 30 June 2020 is:

Select one:

a.

$12,600

b.

$26,000

c.

$20,000

d.

$23,000

On 30 January 2020 Kurt Ltd received a truck that had been purchased from Cobain Ltd, second hand (ie, used), at a price of $24,000. Kurt Ltd had to pay an additional $3,000 to add parts so that the truck would be ready to safely drive for Kurt Ltd's employees. The truck was transported to Kurt Ltd's worksite at a cost of $1,500.

During delivery of the truck, damage was done to Kurt Ltd's worksite and cost Kurt Ltd $500 to repair. On 1 February 2020 the truck was ready to use. Kurt Ltd estimated that the truck had a residual value of $1,500 and a useful life of 3 years. Kurt Ltd uses the straight-line method to depreciate trucks.

The amount that Kurt Ltd should record for depreciation on 30 June 2020 is:

Select one:

a.

$3,750

b.

$9,000

c.

$4,500

d.

$3,125