Western Sydney Ltd commenced operations on $1$ July $2018.$ The following has been extracted from their internal reports for the second year of operations:

$($Note: data for the first year of operations is available from Week $2$ Lecture Example$)$

Income Statement $($Extract$)$ for the year ended $30$ June $2020$

Gross profit

Expenses

Administration expenses

Doubtful debts expense

Salaries expense.

Interest

Long$-$service leave

Warranty expense

Depreciation expense $-$ plant

Insurance expense

Accounting profit before income tax expense

$$

$56000$

$21000$

$195000$

$13000$

$28000$

$41000$

$80000$

$30000$

Assets and liabilities as disclosed in the balance sheet as at $30$ June $2020$ were:

Assets

Cash

Inventory

Accounts Receivable $($net of $$6,000$ D$.$ Debt Allowance$)$

Prepaid insurance

Plant $-$ cost

$\frac{464000}{314000}$

Accum Depn $-$ Plant

$400000$

Liabilities

Accounts Payable

Provision for warranty

Provision for long$-$service leave

Loan Payable

$160000240000$

Additional information:

$74500$

$45000$

$2000$

$175000$

Plant is depreciated straight$-$line with no residual value over five years for accounting purposes and four years for taxation purposes.

The administration expense includes payment of $$12,000$ for goodwill impairment.

Bad debts written off during the year were $$21,000.$

Insurance, warranty and long$-$service leave are deductible for tax purposes when paid.

The tax rate is $30\%$

Required:

$($a$)$ Calculate taxable income and its current tax consequences.

$($b$)$ Complete the deferred tax worksheet $($use the template attached here: ACCT$3007$ Week $3$ Portfolio Part $($b$)$ Template.docx

$($c$)$ Prepare the journal entries for both the current and deferred tax consequences and for disclosure of deferred tax in the Balance Sheet. $($Narrations are required$)$

$($b$)$ Determine future tax consequences for year end $30$ June $2020$

$\backslash$table$[[30$ June $2020,\backslash$table$[[$Carrying$],[$Amount$]],$Tax Base,$\backslash$table$[[$Deductible$],[$Temporary$],[$Differences$]],\backslash$table$[[$Taxable$],[$Temporary$],[$Differences$]],\backslash$table$[[$Income$],[$Tax$],[$Expense$]],\backslash$table$[[$Income$],[$Tax$],[$Payable$]]],[,$$$,$$$,$$$,$$$,$$$,$$