Background information

The profit before tax, reported in the statement of comprehensive income of Balwyn Ltd for the year ended $30$ June $2024$

amounted to: $12,030,000$

Subscription revenue $375,000$

Government award income $676,000$

Doubtful debts expense $75,000$

Depreciation $($Equipment$)586,440$

Depreciation $($Buildings$)120,000$

Maintenance expense $338,000$

Employee benefits expense $225,000$

Rent expense $112,000$

Entertainment expense $187,900$

The draft statements of financial position of the company at $30$ June $2024$ and $2023$ showed the following assets and liabilities:

$2024($$$)2023($$$)$

Assets

Cash $789,000864,000$

Inventory $1,691,0001,541,000$

Accounts receivable $4,887,0004,661,000$

Allowance for doubtful debts $(390,000)(360,000)$

Prepaid rent $210,000195,000$

Equipment $4,887,0004,887,000$

Accumulated depreciation $-$ Equipment $(2,932,200)(2,345,760)$

Buildings $3,007,0003,007,000$

Accumulated depreciation $-$ Buildings $(1,203,000)(1,082,000)$

Land $1,879,0001,879,000$

Goodwill $($net$)751,000751,000$

Deferred tax asset $?448,188$

Liabilities

Accounts payable $2,857,0002,556,000$

Provision for maintenance $601,000451,000$

Provision for employee benefits $413,000300,000$

Subscription received in advance $263,000187,000$

Deferred tax liability $?0$

Additional Information:

Subscription revenue is tax assessable when it is received in cash

Government award income is not tax assessable

Doubtful debts are tax deductible when the company actually incurs bad debts$/$write off

For accounting purpose, the equipment is depreciated using the annual straight line method at a rate of: $12\%$

For tax purpose, however, the equipment is depreciated using the annual straight line method at a rate of: $10\%$

Depreciation of buildings is not allowed as tax deductions and goodwill is not tax assessable

Employee benefits are tax deductible when they are paid in cash to the employees

Rent expense and maintenance expense are tax deductible when paid in cash

Entertainment expense is not allowed as tax deduction

Assume a tax rate for the financial years ending $30$ June $2023$ and $2024$ to be: $30\%$

Required:

Calculate the taxable income$/$tax loss and the current tax liability $($if any$)$ for the financial year ended $30$ June $2024.$ and format on a table.

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 $2024.$

Prepare the deferred tax journal entries for the year ended $30$ June $2024.$

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.

Assume that by $1$ December $2024$ there was a change in tax rate to: $27\mathrm{.}50\%$

With reference to AASB$112$ Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability

balances as at $1$ December $2024$ following a lower tax threshold for the $2024-2025$ financial year.

Prepare the journal entries to record the effect of change in tax rate.