UBS Ltd provides you the following information for the year ended 30 June 2022:

$

Accounting profit (profit before tax) 6,000

Depreciation for accounting purpose* 10,000

Depreciation for tax purpose 20,000

Warranty expense * 6,000

Entertainment costs* 10,000

Income tax rate 30%

*These items are non-deductible for tax purposes.

Required:

 

i) Calculate taxable profit/income 

 

ii) Prepare journal entry to recognize current tax in accordance with AASB 112 - Income Taxes 

 

Answer rating: 100% (QA)

i To calculate taxable profitincome we need to start with the accounting profit and make adjustments ... View the full answer