Merry Ltd has determined the following for the year ended 30 June 2021:

• Profit before tax $82,000
• Taxable profit $94,000
• Total taxable temporary differences $54,000
• Total deductible temporary differences $70,000

In the previous year ending 30 June 2020, Merry Ltd reported the following balances:

• Deferred tax asset $24,000
• Deferred tax liability $15,000

The income tax rate is 30%

Required:

Prepare the end of year adjusting entries for Merry Ltd required under AASB112 Income Taxes for the period ending 30 June 2021.

Answer rating: 100% (QA)

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