You are a senior accountant in a second-tier accounting firm. Your client, Banksia Ltd, has prepared its adjusted trial balance for the year ended 30 June 2035. Your manager has asked you to assist the client to determine the income tax expense for the year and the tax assets and liabilities that arise from the transactions and events of the year.

The following tables provide relevant information from the adjusted trial balance:

The following tables provide relevant information from the adjusted trial balance: TABLE 1 Accounting profit Annual leave expense Depreciation expense Depreciation expense - 2035 1,140,000 186,000 - equipment motor vehicles 60,000 105,000 570,000 54,000 36,000 15,000 6,000 Doubtful debts expense Impairment Goodwill Entertainment expense Interest revenue Long service leave expense TABLE 2 Assets (alphabetic order) Accounts receivable Allowance for doubtful debts Cash Deferred tax asset 2035 2034 1,755,000 1,290,000 (54,000) (39,000) 27,000 230,400 41,400 Equipment 1,500,000 1,500,000 Accumulated depreciation equipment (120,000) (60,000) Goodwill 264,000 264,000 Accumulated impairment losses - goodwill (54,000) 0 Interest receivable 1,200 1,500 Inventories 474,000 381,000 Motor vehicles 1,050,000 1,050,000 (210,000) (105,000) Accumulated depreciation - motor vehicles Liabilities (Alphabetic order) Accounts payable Annual leave provision Deferred tax liability Long service leave provision 795,000 741,000 180,000 90,000 31,950 15,000 9,000