Velos Lid commences operations on 1 July 2019. One year after the commencement of m June 2020) the entity prepares the following information showing both the carrying counting purposes and the tax bases of the respective assets and liabilities Carrying values S) Tax bases e Accounts receivable (net) Prepaid insurance Inventory Plant net 60 000 45 000 16 000 35 000 444 000 600 000 Land 35 000 370 000 600 000 Liabilities Accounts payable Provision for warranty Loan payable 55 000 55 000 18 000 250.000 250 000 Other information desting for differences between tax rules and accounting rules, it is determined that the income of Kingston Ltd is $550 000 Doubtful debts expense for the year was 515 000 and no debts have been written off Insurance paid for the year was $22 000. An item of plant is purchased at a cost of $555 000 on July 2019. For accounting purposes, pected to have a life of five years, however, for taxation purposes it can be depreciated over three years. It is not expected to have any residual value. Name of the amounts accrued in respect of warranty expenses has actually been paid. The tax rate is 30 per cent Required suming there are no permanent differences for tax purposes, determine the amount of ng profit before tax for the year ending 30 June 2020 and hence determine taxe and tax payable ation of Current Tax Consequences for Y/E 30 June coring Profit Before Tei (S'000) Tax xpense 6:17 D- Kingston Ltd commences operations on 1 July 2019. One year after the commencement of its operations (30 June 2020) the entity prepares the following information, showing both the carrying amounts for accounting purposes and the tax bases of the respective assets and liabilities Cars (5) Bases Accounts receivable (net) Prepaid insurance 16 000 Acople 55 000 Lean payable 25000 Other information . After adjusting for differences between tax rules and accounting rules, it is determined that the taxable income of Kingston Ltd is $550 000. Doubtful debts expense for the year was S15 000 and no debts have been written off. Insurance paid for the year was $22 000. An item of plant is purchased at a cost of $555 000 on 1 July 2019. For accounting purposes, it is expected to have a life of five years; however, for taxation purposes it can be depreciated over three years. It is not expected to have any residual value. . None of the amounts accrued in respect of warranty expenses has actually been paid. The tax rate is 30 per cent. Required: Assuming there are no permanent differences for tax purposes determine the amount of accounting profit before tax for the year ending 30 June 2020 and hence determine tax expense and tax payable. Calculation of Current Tax Consequences for Y/E 30 June 2020 ('000) Accounting Profit Before Tax Tax Expense *30% = Temporary differences: Tax payable Taxable income 30%- (b) Complete the following tax effect worksheet and prepare journal entries for current and deferred tax consequences for the year ending 30 June 2020 Velos Lid commences operations on 1 July 2019. One year after the commencement of m June 2020) the entity prepares the following information showing both the carrying counting purposes and the tax bases of the respective assets and liabilities Carrying values S) Tax bases e Accounts receivable (net) Prepaid insurance Inventory Plant net 60 000 45 000 16 000 35 000 444 000 600 000 Land 35 000 370 000 600 000 Liabilities Accounts payable Provision for warranty Loan payable 55 000 55 000 18 000 250.000 250 000 Other information desting for differences between tax rules and accounting rules, it is determined that the income of Kingston Ltd is $550 000 Doubtful debts expense for the year was 515 000 and no debts have been written off Insurance paid for the year was $22 000. An item of plant is purchased at a cost of $555 000 on July 2019. For accounting purposes, pected to have a life of five years, however, for taxation purposes it can be depreciated over three years. It is not expected to have any residual value. Name of the amounts accrued in respect of warranty expenses has actually been paid. The tax rate is 30 per cent Required suming there are no permanent differences for tax purposes, determine the amount of ng profit before tax for the year ending 30 June 2020 and hence determine taxe and tax payable ation of Current Tax Consequences for Y/E 30 June coring Profit Before Tei (S'000) Tax xpense 6:17 D- Kingston Ltd commences operations on 1 July 2019. One year after the commencement of its operations (30 June 2020) the entity prepares the following information, showing both the carrying amounts for accounting purposes and the tax bases of the respective assets and liabilities Cars (5) Bases Accounts receivable (net) Prepaid insurance 16 000 Acople 55 000 Lean payable 25000 Other information . After adjusting for differences between tax rules and accounting rules, it is determined that the taxable income of Kingston Ltd is $550 000. Doubtful debts expense for the year was S15 000 and no debts have been written off. Insurance paid for the year was $22 000. An item of plant is purchased at a cost of $555 000 on 1 July 2019. For accounting purposes, it is expected to have a life of five years; however, for taxation purposes it can be depreciated over three years. It is not expected to have any residual value. . None of the amounts accrued in respect of warranty expenses has actually been paid. The tax rate is 30 per cent. Required: Assuming there are no permanent differences for tax purposes determine the amount of accounting profit before tax for the year ending 30 June 2020 and hence determine tax expense and tax payable. Calculation of Current Tax Consequences for Y/E 30 June 2020 ('000) Accounting Profit Before Tax Tax Expense *30% = Temporary differences: Tax payable Taxable income 30%- (b) Complete the following tax effect worksheet and prepare journal entries for current and deferred tax consequences for the year ending 30 June 2020