The following represents an extract from the Statement of Financial Position of the assets and liabilities of Loyd Limited for the years ending 30 June 2019 and 2018.<\/p>
<\/p>
<\/p>
2019<\/strong><\/p> $<\/strong><\/p> 2018<\/strong><\/p> $<\/strong><\/p> Assets<\/strong><\/p> <\/p> <\/p> Cash<\/p> 56 000<\/p> 68 000<\/p> Accounts receivable <\/p> 55 000<\/p> 46 000<\/p> Allowance for doubtful debts <\/p> (8 200)<\/p> (5 900)<\/p> Inventory<\/p> 36 000<\/p> 29 000<\/p> Interest receivable<\/p> 7 300<\/p> 8 500<\/p> Deferred tax asset<\/p> ?<\/p> 12 150<\/p> Development costs<\/p> 90 000<\/p> 80 000<\/p> Less:<\/em> Accumulated amortisation<\/p> (45 000)<\/p> (20 000)<\/p> Plant & equipment<\/p> 120 000<\/p> 165 000<\/p> Less<\/em>: Accumulated depreciation<\/p> (72 000)<\/p> (75 000)<\/p> <\/p> <\/p> <\/p> Liabilities<\/strong><\/p> <\/p> <\/p> Accounts payable<\/p> 19 000<\/p> 17 000<\/p> Deferred tax liability<\/p> ?<\/p> 20 550<\/p> Unearned rent revenue<\/p> 14 000<\/p> 12 600<\/p> Loan<\/p> 50 000<\/p> 50 000<\/p> Provision for long-service leave<\/p> 13 200<\/p> 12 000<\/p> <\/p> Additional Information:<\/em><\/p> a)Interest and rent revenue are both assessable when the cash is received.<\/p> <\/p> b)A deduction of 125% for development costs can be claimed when the costs are paid.<\/p> <\/p> c)Doubtful debts are deductible for tax purposes when the debt is written off.<\/p> <\/p> d)Loyd Ltd sold an item of equipment on 1 March 2019 for $26,000. For tax purposes the carrying amount of equipment sold was $19,000. There were no other disposals or acquisitions of equipment during the year.<\/p> <\/p> e)The tax deduction for depreciation for 2019 was $18,000 and the accumulated depreciation at 30 June 2018 for taxation purposes was $65,000.<\/p> <\/p> f)Long-service leave is deductible when the payment is made.<\/p> <\/p> g)The current tax rate is 30%<\/p> <\/p> Required:<\/em><\/strong><\/p> Prepare the deferred tax worksheet for Loyd Limited for the year ended 2019 and prepare the necessary journal entries to record movements in the deferred tax accounts. (10 marks)<\/strong><\/p>",
"transcribed_text": "",
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