Koona Ltd recorded an accounting profit before tax of $200 000 for the year ended 30 June

Question:

Koona Ltd recorded an accounting profit before tax of $200 000 for the year ended 30 June 2024. Included in the accounting profit were the following items of revenue and expense.

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1. Use a current tax worksheet to calculate the current tax liability for Koona Ltd for the year ended 30 June 2024. Prepare the journal entry to record current tax.

2. Explain the future tax effect of the adjustment made in requirement 1 for rent revenue/received.

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Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

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Question Posted: Apr 07, 2024 12:02 AM

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Koona Ltd recorded an accounting profit before tax of $200 000 for the year ended 30 June

Question:

Entertainment expenses (non-deductible) $ 5 000 Depreciation expense-machinery (10% p.a., straight-line) 24 000 Rent revenue 17.000 For tax purposes the following applied. Depreciation rate-machinery Rent received Income tax rate 15% 15.000 30%

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1 The entry to recognise current tax is 2 In part 1 a net 2000 17 000 15 000 was s...View the full answer

Financial Reporting

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