You are provided with the following information from the accounts of KPM Ltd for the year ending 30th June, 2019, as shown in the table below:

Accounting Information ($) Amount

Cash Sales 500 000

Cost of Goods Sold 45 000

Amount received in advance for services to be performed in August 2019 9 500

Rent expenses for year ended 30th June, 2019 9 000

Rent Prepaid for two months to 31st August, 2019 1 200

Doubtful debts expenses 1 200

Amount provided in 2019 for employees long-service leave entitlements 5 000

Goodwill impairment expenses 3 000

Required:

a) Calculate the taxable profit and accounting profit for the year ending 30th June, 2019. (6 marks)

b) NRP Ltd has the following deferred tax balances as at 30th June, 2019. Deferred tax asset $8 00 000 Deferred tax liability $6 00 000 The above balances were calculated when the tax rate, was 20 per cent. On 1st December, 2019 the government raises the corporate tax rate to 25 per cent.