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

$

$778000$

Expenses

Administration expenses

$56000$

Doubtful debts expense

$21000$

Salaries expense.

$195000$

Interest

$13000$

Long$-$service leave $.............................................................................28000$

Depreciation expense $-$ plant

$80000$

Insurance expense

Accounting profit before income tax expense

${30000}_{,}\frac{464000}{314000}$

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

Accum Depn $-$ Plant

$26000$

$105000$

$129000$

Liabilities

Accounts Payable

$74500$

Provision for warranty

Provision for long$-$service leave

$45000$

Loan Payable

$2000$

$175000$

Additional information:

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$)$