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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 A Ready B Journal entry: Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30th June 2023. Prepare a journal entry to recognise the current tax liability/tax loss. Background Information Accessibility: Investigate C Dr $ Cr D 18 marks Calculating Taxable Income E Workings: F G Calculating DTA_DTL 2023 H | Change in Tax Rate J + K L M N O P A Q B R S T U + 80% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 A B Journal entry: Background Information Ready Accessibility: Investigate C Dr Calculate deferred tax asset and deferred tax liability balances as at 30th June 2023. Prepare the deferred tax journal entries for the year ended 30th June 2023. D Cr 23 marks E Calculating Taxable Income F G H Calculating DTA_DTL 2023 I J K Change in Tax Rate L + M N O P Q R S T A U V W X + 90% Y 1 2 3 4 5 6 7 89 10pmppu 11 12 13 14 15 A Journal entry: B Background Information 27,50% Assume that by 1 December 2023 there was a change in tax rate to: With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability balances as at 1 December 2023 following a lower tax threshold for the financial year 2023-2024. Prepare the journal entries to record the effect of change in tax rate. Calculating Taxable Income C Dr D Cr 9 marks E Calculating DTA_DTL 2023 Change in Tax Rate F + G H I J K L M N Background information The profit before tax, reported in the statement of comprehensive income of Mornington Ltd for the year ended 30 June amounted to: Service revenue Prize money Doubtful debts expense Depreciation (Vehicle) Depreciation (Buildings) Maintenance expense Warranties expense Insurance expense Government issued fine Assets Cash The draft statements of financial position of the company at 30 June 2023 and 2022 showed the following assets and liabilities: 2023 ($) Inventory Accounts receivable Allowance for doubtful debts Prepaid insurance Vehicle Accumulated depreciation - Vehicle Buildings Accumulated depreciation - Buildings Land Patents Deferred tax asset Liabilities Accounts payable Provision for maintenance Provision for warranties Service revenue received in advance Deferred tax liability 2.630.000 Additional Information: Service revenue is tax assessable when it is received in cash 82.000 147.000 16.000 106.800 26.000 73.000 49.000 24.000 41.000 172.000 369.000 1.068.000 (85.000) 46.000 1.068.000 (854.400) 657.000 (263.000) 410.000 164.000 ? 624.000 131.000 90.000 57.000 ? 2023 2022 ($) 189.000 336.000 1.019.000 (78.000) 42.000 1.068.000 (747.600) 657.000 (236.000) 410.000 164.000 116.856 558.000 98.000 65.000 41.000 0 Liabilities Accounts payable Provision for maintenance Provision for warranties Service revenue received in advance Deferred tax liability Additional Information: Service revenue is tax assessable when it is received in cash Prize money is not tax assessable Doubtful debts are tax deductible when the company actually incurs bad debts/write off For accounting purpose, the vehicle is depreciated using the annual straight line method at a rate of: For tax purpose, however, the vehicle is depreciated using the annual straight line method at a rate of: Depreciation of buildings is not allowed as tax deductions and patents are not tax assesable Warranties are tax deductible when they are paid in cash to affected customers insurance expense and maintenance expense are tax deductible when paid in cash Government issued fine is not allowed as tax deduction Assume a tax rate for the financial years ending 30 June 2022 and 2023 to be: Required: Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30 June 2023. Prepare a journal entry to recognise the current tax liability/tax loss. Calculate deferred tax asset and deferred tax liability balances as at 30 June 2023. Prepare the deferred tax journal entries for the year ended 30 June 2023. Note that you are NOT required to prepare journals to offset the deferred tax asset and deferred tax liability balances. Show your calculation using deferred tax worksheets by creating separate columns for: carrying amount, tax base, taxable temporary differences and deductible temporary differences. 624.000 131.000 90.000 57.000 ? Assume that by 1 December 2023 there was a change in tax rate to: With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability balances as at 1 December 2023 following a lower tax threshold for the 2023-2024 financial year. Prepare the journal entries to record the effect of change in tax rate. 558.000 98.000 65.000 41.000 0 10% 8% 30% 27,50% (18+23+9 = 50 marks) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 A Ready B Journal entry: Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30th June 2023. Prepare a journal entry to recognise the current tax liability/tax loss. Background Information Accessibility: Investigate C Dr $ Cr D 18 marks Calculating Taxable Income E Workings: F G Calculating DTA_DTL 2023 H | Change in Tax Rate J + K L M N O P A Q B R S T U + 80% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 A B Journal entry: Background Information Ready Accessibility: Investigate C Dr Calculate deferred tax asset and deferred tax liability balances as at 30th June 2023. Prepare the deferred tax journal entries for the year ended 30th June 2023. D Cr 23 marks E Calculating Taxable Income F G H Calculating DTA_DTL 2023 I J K Change in Tax Rate L + M N O P Q R S T A U V W X + 90% Y 1 2 3 4 5 6 7 89 10pmppu 11 12 13 14 15 A Journal entry: B Background Information 27,50% Assume that by 1 December 2023 there was a change in tax rate to: With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability balances as at 1 December 2023 following a lower tax threshold for the financial year 2023-2024. Prepare the journal entries to record the effect of change in tax rate. Calculating Taxable Income C Dr D Cr 9 marks E Calculating DTA_DTL 2023 Change in Tax Rate F + G H I J K L M N Background information The profit before tax, reported in the statement of comprehensive income of Mornington Ltd for the year ended 30 June amounted to: Service revenue Prize money Doubtful debts expense Depreciation (Vehicle) Depreciation (Buildings) Maintenance expense Warranties expense Insurance expense Government issued fine Assets Cash The draft statements of financial position of the company at 30 June 2023 and 2022 showed the following assets and liabilities: 2023 ($) Inventory Accounts receivable Allowance for doubtful debts Prepaid insurance Vehicle Accumulated depreciation - Vehicle Buildings Accumulated depreciation - Buildings Land Patents Deferred tax asset Liabilities Accounts payable Provision for maintenance Provision for warranties Service revenue received in advance Deferred tax liability 2.630.000 Additional Information: Service revenue is tax assessable when it is received in cash 82.000 147.000 16.000 106.800 26.000 73.000 49.000 24.000 41.000 172.000 369.000 1.068.000 (85.000) 46.000 1.068.000 (854.400) 657.000 (263.000) 410.000 164.000 ? 624.000 131.000 90.000 57.000 ? 2023 2022 ($) 189.000 336.000 1.019.000 (78.000) 42.000 1.068.000 (747.600) 657.000 (236.000) 410.000 164.000 116.856 558.000 98.000 65.000 41.000 0 Liabilities Accounts payable Provision for maintenance Provision for warranties Service revenue received in advance Deferred tax liability Additional Information: Service revenue is tax assessable when it is received in cash Prize money is not tax assessable Doubtful debts are tax deductible when the company actually incurs bad debts/write off For accounting purpose, the vehicle is depreciated using the annual straight line method at a rate of: For tax purpose, however, the vehicle is depreciated using the annual straight line method at a rate of: Depreciation of buildings is not allowed as tax deductions and patents are not tax assesable Warranties are tax deductible when they are paid in cash to affected customers insurance expense and maintenance expense are tax deductible when paid in cash Government issued fine is not allowed as tax deduction Assume a tax rate for the financial years ending 30 June 2022 and 2023 to be: Required: Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30 June 2023. Prepare a journal entry to recognise the current tax liability/tax loss. Calculate deferred tax asset and deferred tax liability balances as at 30 June 2023. Prepare the deferred tax journal entries for the year ended 30 June 2023. Note that you are NOT required to prepare journals to offset the deferred tax asset and deferred tax liability balances. Show your calculation using deferred tax worksheets by creating separate columns for: carrying amount, tax base, taxable temporary differences and deductible temporary differences. 624.000 131.000 90.000 57.000 ? Assume that by 1 December 2023 there was a change in tax rate to: With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability balances as at 1 December 2023 following a lower tax threshold for the 2023-2024 financial year. Prepare the journal entries to record the effect of change in tax rate. 558.000 98.000 65.000 41.000 0 10% 8% 30% 27,50% (18+23+9 = 50 marks)

Answer rating: 100% (QA)

To calculate taxable incometax loss and current tax liability we need more specific financial information such as revenue expenses depreciation and other relevant data Without this information it is n... View the full answer