Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The profit before tax, as reported in the statement of profit and loss for Albury Ltd for the year ended 30 June 2024, + amounted
The profit before tax, as reported in the statement of profit and loss for Albury Ltd for the year ended 30 June 2024, + amounted to $400 000, including the following revenue and expense items. Sales revenue $ 2 600 000 Interest revenue 200 000 Government grant (non-taxable) 200 000 Gain on sale of equipment 40 000 Cost of sales 1 600 000 Bad debts expense 40 000 Depreciation expense - equipment 40 000 Depreciation expense - plant 80 000 Research and development expense 240 000 Wages expense 480 000 Long service leave expense 80 000 The draft statements of financial position of Albury Ltd at 30 June 2023 and 30 June 2024 showed the following assets and liabilities. 2023 2024 Assets $ $ 120,000 600.000 280.000 (40.000) 80.000 Cash Inventories Accounts receivable Allowance for doubtful debts Interest receivable Equipment Accumulated depreciation - equipment Plant Accumulated depreciation - plant Goodwill Deferred tax asset 120 000 400.000 200.000 (20.000) 100.000 120.000 (60.000) 800.000 (160.000) 60.000 132 000 800.000 (240.000) 60.000 ? 160.000 240.000 200.000 Liabilities Accounts payable Wages payable Revenue received in advance Loan payable Provision for long service leave Deferred tax liability 800.000 160.000 96.000 320.000 80.000 400.000 120.000 ? For tax purposes: : the gain on the sale of equipment is $30 000. (the equipment was sold on 1 July 2023) o plant is depreciated straight line over 5 years (no residual value). the government allows a tax deduction on research and development (R&D) expenditure equal to 150% of cash spent in the year. The cash spent on R&D for 30 June 2024 is $240 000. The company tax rate is 30%. o Required 2. Prepare the current tax worksheet and the journal entry to recognise current tax at 30 June 2024
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started