You are the accountant of Brand New Friend Ltd, a reporting entity with a year-end of 30 June 2020. You are currently preparing the tax information for inclusion in the financial statements. An extract from the statement of profit or loss and other comprehensive income is as follows:

Profit before tax	$ 500 000
Included in the profit:
Employee expenses	550 000
Legal expenses	125 000
Exempt income	75 000
Interest revenue	30 000
Audit fees expense	80 000
Rent revenue	20 000
Interest expense	20 000
Bad debts expense	30 000
Depreciation expense plant and equipment	52 500
Depreciation expense buildings	10 000
Entertainment expenses	5 000

Additional information

(a) Exempt income is not subject to tax.

(b) Interest is assessable on receipt and deductible when paid. Interest receivable at 30 June 2020 is $25 000 (2019: $30 000). Interest payable at 30 June 2020 is $1 000 (2019: $6 000).

(c) The company raised an accrual liability of $35 000 for work not performed by 30 June 2020 (2019: $30 000). Fees for audit work are not deductible unless the audit work has been performed.

(d) Rent revenue relates to a contract where the annual rent is received in advance. The unearned revenue liability at 30 June 2020 is $20 000 (2019: $15 000). Rent is assessable when received.

(e) The bad debts expense relates to an account that has been written off.

(f) Property, plant and equipment is as follows:

	30 June 2017		30 June 2016
Buildings at cost	$ 500 000		$ 500 000
Accumulated depreciation buildings	(50 000)		(40 000)
	450 000		460 000
Plant and equipment at cost	350 000		150 000
Accumulated depreciation plant and equipment	(97 500)		(45 000)
	252 500		105 000
Total Property, plant and equipment (NET)	$ 702 500		$ 565 000

The companys buildings do not qualify for tax deductions.

Plant and equipment tax depreciation for 30 June 2020 is $70 000. The tax written down value (or tax base) of plant and equipment at 30 June 2020 is $220 000 (2019: $90 000).

(g) Legal expenses include $50 000 related to capital transactions that are not deductible.

(h) Employee expenses for the year include $60 000 for annual leave and long-service leave. The provision for employee benefits at 30 June 2020 is $180 000 (2019: $170 000).

(i) The deferred tax balances at 30 June 2019 are:

Deferred tax liability	$13 500
Deferred tax asset	$66 300

(j) The company tax rate is 30%.

Required

1. Complete the current tax worksheet and prepare the tax entries for 30 June 2020. (8 marks)

Complete the deferred tax worksheet and prepare the tax entries for 30 June 2020