The profit before tax, as reported in the statement of profit and loss for Aileen Ltd for the year ended 30 June 2020, amounted to $216,000, including the following revenue and expense items: yet adjusted its accounts to reflect the amendment. The remaining losses can be used to offset taxable incomes in future periods. Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. All other general taxation rules apply. The depreciation regimes for the financial reports and the company income tax return respectively, are listed below. Equipment Plant 20 yrs. Expenses Cost of goods sold $300,000 Bad debts expense $10,000 Depreciation expense - equipment $6,000 Depreciation expense - plant $25,000 Amortisation expense - development $33,000 costs Wages expense $120,000 Revenues Sales Revenue $600,000 Interest Revenue $70,000 Government Grant $40,000 20% 30% Depreciation Regimes Depreciation rate: Accounting | Method Accounting Tax Residual: 10 yrs. Straight-line Reducing Balance Zero Straight-line Straight-line Zero The draft statement of financial position of Aileen Ltd at 30 June 2020 and the statement from last year showed the following assets and liabilities: A tax deduction for development costs of 110% of the $99,000 spent during the year is available. All revenues recorded in the rent received in advance account belong to the next financial period. All movements of deferred tax accounts during the year are not yet recognised. The company tax rate applicable is 30%. 2019 2020 REQUIRED: $25,000 $100,000 $50,000 ($5,000) $25,000 $30,000 ($12,000) $30,000 $150,000 $70,000 ($9,000) $21,000 $30,000 ($18,000) Complete the worksheet below to determine the movements in the deferred tax accounts for the year ended 30 June 2020. (15 marks) Carrying Amount Future Taxable Amount Future Deductible Amount Taxable Temporary Differences Deductible Temporary Differences Tux Base $500.000 ($50,000) Assets Cash Inventory Accounts receivable Allowance for doubtful debts Interest receivable Equipment -cost Accumulated depreciation - cquipment Plant-cost Accumulated depreciation - plant Development costs Accumulated amortisation - development costs Goodwill Deferred tax asset Liabilities Accounts payable Wages payable Rent received in advance Loan payable Deferred tax liability $500,000 ($75,000) $99,000 ($33,000) $15,000 $15,000 $33,000 Assets Cash Inventory Accounts receivable Interest receivable Equipment Plant Development Cors Goodwill Liabilities Accounts payable Wages payable Revenue received in advance Loan payable ? $60,000 $50,000 $40,000 $80,000 $30,000 $100,000 $200,000 $18,113 ? Temporary differences Excluded differences Net temporary differences Additional information: In the year ended 30 June 2019, Aileen Ltd had a tax loss of $70,000 that it carried over in the deferred tax asset. In June 2020, the company received an amended assessment for the year ended 30 June 2020 from the ATO, indicating that an amount of $10,000 claimed as a deduction has been disallowed. Aileen Ltd has not Deferred tax liability Deferred tax asset Beginning balances Movement during year Adjustment The profit before tax, as reported in the statement of profit and loss for Aileen Ltd for the year ended 30 June 2020, amounted to $216,000, including the following revenue and expense items: yet adjusted its accounts to reflect the amendment. The remaining losses can be used to offset taxable incomes in future periods. Amounts received from sales, including those on credit terms, are taxed at the time the sale is made. All other general taxation rules apply. The depreciation regimes for the financial reports and the company income tax return respectively, are listed below. Equipment Plant 20 yrs. Expenses Cost of goods sold $300,000 Bad debts expense $10,000 Depreciation expense - equipment $6,000 Depreciation expense - plant $25,000 Amortisation expense - development $33,000 costs Wages expense $120,000 Revenues Sales Revenue $600,000 Interest Revenue $70,000 Government Grant $40,000 20% 30% Depreciation Regimes Depreciation rate: Accounting | Method Accounting Tax Residual: 10 yrs. Straight-line Reducing Balance Zero Straight-line Straight-line Zero The draft statement of financial position of Aileen Ltd at 30 June 2020 and the statement from last year showed the following assets and liabilities: A tax deduction for development costs of 110% of the $99,000 spent during the year is available. All revenues recorded in the rent received in advance account belong to the next financial period. All movements of deferred tax accounts during the year are not yet recognised. The company tax rate applicable is 30%. 2019 2020 REQUIRED: $25,000 $100,000 $50,000 ($5,000) $25,000 $30,000 ($12,000) $30,000 $150,000 $70,000 ($9,000) $21,000 $30,000 ($18,000) Complete the worksheet below to determine the movements in the deferred tax accounts for the year ended 30 June 2020. (15 marks) Carrying Amount Future Taxable Amount Future Deductible Amount Taxable Temporary Differences Deductible Temporary Differences Tux Base $500.000 ($50,000) Assets Cash Inventory Accounts receivable Allowance for doubtful debts Interest receivable Equipment -cost Accumulated depreciation - cquipment Plant-cost Accumulated depreciation - plant Development costs Accumulated amortisation - development costs Goodwill Deferred tax asset Liabilities Accounts payable Wages payable Rent received in advance Loan payable Deferred tax liability $500,000 ($75,000) $99,000 ($33,000) $15,000 $15,000 $33,000 Assets Cash Inventory Accounts receivable Interest receivable Equipment Plant Development Cors Goodwill Liabilities Accounts payable Wages payable Revenue received in advance Loan payable ? $60,000 $50,000 $40,000 $80,000 $30,000 $100,000 $200,000 $18,113 ? Temporary differences Excluded differences Net temporary differences Additional information: In the year ended 30 June 2019, Aileen Ltd had a tax loss of $70,000 that it carried over in the deferred tax asset. In June 2020, the company received an amended assessment for the year ended 30 June 2020 from the ATO, indicating that an amount of $10,000 claimed as a deduction has been disallowed. Aileen Ltd has not Deferred tax liability Deferred tax asset Beginning balances Movement during year Adjustment