The following information was extracted from the records of Jackson Ltd as at 30 June 2020.Asset (liability)Accounts receivableMotor vehiclesProvision for warrantyDeposits received in advanceCarrying amount$150 000165 000(12 000)(15 000)Tax base$175 000125 00000The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Depositsare taxable when received, and warranty costs are deductible when paid. An allowance for doubtfuldebts of $25 000 has been raised against accounts receivable for accounting purposes, but such debtsare deductible only when written off as uncollectable.Required1. Calculate the temporary differences for Jackson Ltd as at 30 June 2020. Justify yourclassification of each difference as either a deductible temporary difference or a taxabletemporary difference.2. Prepare a deferred tax worksheet and the journal entry to record deferred tax for the yearended 30 June 2020 assuming no deferred items had been raised in prior years. urce/content/1/T3%202021%20-%20BAP32%20-%20Group%20Assignment.pdf3/6100%Case 2: Calculation of deferred tax, and adjustment entry (5%)The following information was extracted from the records of Jackson Ltd as at 30 June 2020.Carrying amountTax baseAsset (liability)Accounts receivable$150 000$175 000Motor vehicles165 000125 000Provision for warrantyDeposits received in advance(12 000)(15000)The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Depositsare taxable when received, and warranty costs are deductible when paid. An allowance for doubtfuldebts of $25 000 has been raised against accounts receivable for accounting purposes, but such debtsare deductible only when written off as uncollectable.Required1. Calculate the temporary differences for Jackson Ltd as at 30 June 2020. Justify yourclassification of each difference as either a deductible temporary difference or a taxabletemporary difference.2. Prepare a deferred tax worksheet and the journal entry to record deferred tax for the yearended 30 June 2020 assuming no deferred items had been raised in prior years.Case 3: Consolidation worksheet, previously held investment in subsidiary (5%)On 1 A uct 2010 Eco 1td acgu.ired 10o/ of the charec in Cico Ltd for Co 000 Ece Itdused the foirENG

According to TCJA the corporate tax for the year 2020 is consider to be 21% for determine deferred…

Answered: vision for warranty Deposits received…

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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The following information was extracted from the records of Jackson Ltd as at 30 June 2020.
Asset (liability)
Accounts receivable
Motor vehicles
Provision for warranty
Deposits received in advance
Carrying amount
$150 000
165 000
(12 000)
(15 000)
Tax base
$175 000
125 000
0
0
The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Deposits
are taxable when received, and warranty costs are deductible when paid. An allowance for doubtful
debts of $25 000 has been raised against accounts receivable for accounting purposes, but such debts
are deductible only when written off as uncollectable.
Required
1. Calculate the temporary differences for Jackson Ltd as at 30 June 2020. Justify your
classification of each difference as either a deductible temporary difference or a taxable
temporary difference.
2. Prepare a deferred tax worksheet and the journal entry to record deferred tax for the year
ended 30 June 2020 assuming no deferred items had been raised in prior years.

urce/content/1/T3%202021%20-%20BAP32%20-%20Group%20Assignment.pdf
3/6
100%
Case 2: Calculation of deferred tax, and adjustment entry (5%)
The following information was extracted from the records of Jackson Ltd as at 30 June 2020.
Carrying amount
Tax base
Asset (liability)
Accounts receivable
$150 000
$175 000
Motor vehicles
165 000
125 000
Provision for warranty
Deposits received in advance
(12 000)
(15000)
The depreciation rates for accounting and taxation are 15% p.a. and 25% p.a. respectively. Deposits
are taxable when received, and warranty costs are deductible when paid. An allowance for doubtful
debts of $25 000 has been raised against accounts receivable for accounting purposes, but such debts
are deductible only when written off as uncollectable.
Required
1. Calculate the temporary differences for Jackson Ltd as at 30 June 2020. Justify your
classification of each difference as either a deductible temporary difference or a taxable
temporary difference.
2. Prepare a deferred tax worksheet and the journal entry to record deferred tax for the year
ended 30 June 2020 assuming no deferred items had been raised in prior years.
Case 3: Consolidation worksheet, previously held investment in subsidiary (5%)
On 1 A uct 2010 Eco 1td acgu.ired 10o/ of the charec in Cico Ltd for Co 000 Ece Itdused the foir
ENG

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