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TPG's draft statement of financial position at 30 June 2020 showed the following assets and liabilities. Assets 30/06/2020 Inventory 10,500 Accounts Receivable 34,000 Less Allowance
TPG's draft statement of financial position at 30 June 2020 showed the following assets and liabilities. Assets 30/06/2020 Inventory 10,500 Accounts Receivable 34,000 Less Allowance for doubtful debts 6,000 28,000 Buildings (cost) 350,000 Less Accumulated Depreciation (175,000) 175,000 Plant (cost) 225,000 Less Accumulated Depreciation (67,500) 157,500 Deferred Tax Asset (Op balance) 48,600 419,600 Liabilities Accounts payable 46,700 Provision for annual leave 18,200 Deferred Tax Liability (Op Bal) 6,000 70,900 Additional information: As per accounting policy, the company depreciates plant at 15% p.a. on straight line basis. Tax depreciation for plant is 20% (Assume Plant was acquired 3 years back). The company depreciates building for accounting purposes at 5% p.a. on straight line basis. Depreciation on buildings is not deductible for tax purposes Required: Complete the deferred tax worksheet and prepare the journal entries to adjust deferred tax accounts
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