Background information
The profit before tax, reported in the statement of comprehensive income of Initech Ltd for the year ended 30 June		2022
amounted to:	17,920,000
Service revenue	560,000
Prize money	1,008,000
Doubtful debts expense	112,000
Depreciation (Vehicle)	1,092,000
Depreciation (Buildings)	179,000
Maintenance expense	504,000
Warranties expense	336,000
Insurance expense	168,000
Government issued fine	280,000
The draft statements of financial position of the company at 30 June 2022 and 2021 showed the following assets and liabilities:
	2022 ($)	2021 ($)
Assets
Cash	1,176,000	1,288,000
Inventory	2,520,000	2,296,000
Accounts receivable	7,280,000	6,944,000
Allowance for doubtful debts	(582,000)	(537,000)
Prepaid insurance	313,000	291,000
Vehicle	7,280,000	7,280,000
Accumulated depreciation - Vehicle	(4,368,000)	(3,276,000)
Buildings	4,480,000	4,480,000
Accumulated depreciation - Buildings	(1,792,000)	(1,612,000)
Land	2,800,000	2,800,000
Patents	1,120,000	1,120,000
Deferred tax asset	?	166,200
Liabilities
Accounts payable	4,256,000	3,808,000
Provision for maintenance	896,000	672,000
Provision for warranties	616,000	448,000
Service revenue received in advance	392,000	280,000
Deferred tax liability	?	0
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:		15%
For tax purpose, however, the vehicle is depreciated using the annual straight line method at a rate of:		20%
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 2021 and 2022 to be:		30%
Required:
Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30 June 2022.
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 2022.
Prepare the deferred tax journal entries for the year ended 30 June 2022.
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 2022 there was a change in tax rate to:		27.50%
With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability
balances as at 1 December 2022 following a lower tax threshold for the 2022-2023 financial year.
Prepare the journal entries to record the effect of change in tax rate.
(18 + 23 + 9 = 50 marks)