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:	9,840,000
	Subscription revenue	307,000
	Government award income	553,000
	Doubtful debts expense	61,000
	Depreciation (Equipment)	479,640
	Depreciation (Buildings)	98,000
	Maintenance expense	276,000
	Employee benefits expense	184,000
	Rent expense	92,000
	Entertainment expense	153,700
	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	645,000	707,000
	Inventory	1,383,000	1,260,000
	Accounts receivable	3,997,000	3,813,000
	Allowance for doubtful debts	-319,000	-295,000
	Prepaid rent	172,000	159,000
	Equipment	3,997,000	3,997,000
	Accumulated depreciation - Equipment	-2,398,200	-1,918,560
	Buildings	2,460,000	2,460,000
	Accumulated depreciation - Buildings	-984,000	-885,000
	Land	1,537,000	1,537,000
	Goodwill (net)	615,000	615,000
	Deferred tax asset	?	367,128
	Liabilities
	Accounts payable	2,337,000	2,091,000
	Provision for maintenance	492,000	369,000
	Provision for employee benefits	338,000	246,000
	Subscription received in advance	215,000	153,000
	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%

Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30 June 2024.
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:	27.50%
With reference to AASB112 Income Taxes, discuss the accounting treatment of the deferred tax asset and deferred tax liability
balances as at 1 December 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.