Marrah Ltd made an accounting profit before tax of $150 000 for the year ended 30 June

Question:

Marrah Ltd made an accounting profit before tax of $150 000 for the year ended 30 June 2024. Included in the accounting profit were the following items of revenue and expense.

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Required

1. Calculate the current tax liability for the year ended 30 June 2024 for Marrah Ltd, and prepare the journal entry to recognise it.

2. Explain your treatment of annual leave expense and annual leave paid in your answer to requirement 1.

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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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Marrah Ltd made an accounting profit before tax of $150 000 for the year ended 30 June

Question:

Donations (non-deductible) Depreciation expense- - equipment (20% p.a., straight-line) Annual leave expense Rent revenue For tax purposes the following applied. Depreciation rate-equipment Annual leave paid Rent received Income tax rate $ 10 000 20 000 $ EA $ EA 5 000 15 000 25% 7 500 10 000 30%

Step by Step Answer:

1 Adjusting journal entry 2 Rent is recognised as income by Marrah Ltd as it is ...View the full answer

Financial Reporting

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