Topic 2 (c) Lecture Question The accounting profit before tax of Merin Ltd for the year ended 30 June 2021 was $10,000 and included the following income and expense items: Rent revenue $45,000 Bad debts expense $12,000 Depreciation expense - plant $19,500 Insurance expense $22,000 Long service leave expense $33,000 An extract draft statement of financial position as at 30 June 2021 included the following assets and liabilities: 2021 2020 Allowance for doubtful debts $14,000 $16,000 Prepaid insurance $13,000 $10,000 Rent receivable $35,000 $20,000 Plant $130,000 $130,000 Accumulated depreciation - plant ($58,500) ($39,000) Provision for long service leave $21,000 $27,000 Additional information: For accounting purposes plant is depreciated at 15% straight line; for tax purposes plant is depreciated at 20% straight line. The tax rate is 30% Required: Determine the taxable profit/(loss) of Merin Ltd for 30 June 2021 and prepare the necessary journal entry for current tax