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Zommber Ltd reported a profit before tax for the year ended 30 June 2023 of $ X (You will be advised of the amount to
Zommber Ltd reported a profit before tax for the year ended 30 June 2023 of $ X (You will be advised of the amount to use during the workshop). It included the following revenue and expense items: $ Doubtful debts expense 4,000 Depreciation expense 10,000 Entertainment expense 2,200 Wages expense 33,000 The draft statement of financial position as at 30 June 2023 included the following assets and liabilities: 2023 2022 $ $ Cash 5,000 4,400 Accounts receivable 68,000 61,000 Allowance for doubtful debts (7,000) (4,000) Machinery - at cost 120,000 80,000 Accumulated depreciation (50,000) (40,000) Wages payable 2,200 3,700 Deferred tax asset ? 3,510 Deferred tax liability ? 12,000 Additional information: 1. The machinery was purchased on 1 July 2017. Zommber Ltd claims tax depreciation on the machinery at the rate of 20% per year using the straight line method. On 1 January, 2023, additional new machinery was acquired due to the expansion of the business. There have been no disposals of machinery during the year. 2. The company has $4,000 in tax losses carry forward from 2022. A deferred tax asset was recognised for these losses. 3. The corporate tax rate is 30%. Required: A. Prepare the current tax
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