Additional information. 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt expense for the year ended 2020 amounted to $350. 4. A payment of $3,000 was made to Rail Insurance Ltd. 5. Interest income recognized for the year ended 2020 is $700. 6. Land was revalued to its fair value in 2020. 7. Warranty and interest expenses for the current period are $250 and $300, respectively. 8. Half of the deferred tax asset amount is due to tax loss in 2019, which will be recouped in 2020. 9. The accounting profit before tax for the year ended 30 June 2020 is $38,000. 10. There are no other differences between accounting profit before tax and taxable income to account for. 11. The tax rate is 30%. Required: Prepare a deferred tax worksheet for the year ended 30 June 2020, and associated journal entries in accordance to IAS 12/AASB 112 Income Taxes.

Additional information. 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt expense for the year ended 2020 amounted to $350. 4. A payment of $3,000 was made to Rail Insurance Ltd. 5. Interest income recognized for the year ended 2020 is $700. 6. Land was revalued to its fair value in 2020. 7. Warranty and interest expenses for the current period are $250 and $300, respectively. 8. Half of the deferred tax asset amount is due to tax loss in 2019, which will be recouped in 2020. 9. The accounting profit before tax for the year ended 30 June 2020 is $38,000. 10. There are no other differences between accounting profit before tax and taxable income to account for. 11. The tax rate is 30%. Required: Prepare a deferred tax worksheet for the year ended 30 June 2020, and associated journal entries in accordance to IAS 12/AASB 112 Income Taxes.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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