Question: QUESTION 12 A Ltd reported the following information for the year ended 30 June 2018: Accounting profit before tax was 700 000. A building was

QUESTION 12

  1. A Ltd reported the following information for the year ended 30 June 2018:

    Accounting profit before tax was 700 000.

    A building was purchased on 1 July 2015 for $600 000. It is depreciated at 10% straight-line with zero residual value for accounting purpose and 25% straight-line with zero residual value for tax purposes.

    Accounts receivable (gross): opening balance, 200 000; closing balance, 400 000. The allowance for doubtful debts: opening balance, 9 000; closing balance, 20 000. During the period, 6 000 bad debt were written-off.

    Provision for long service leave: opening balance, 40 000; closing balance, 30 000; Long-service-leave expense: 20 000.

    Company tax rate is 30%

    What is the ending balance of the Deferred Tax Liability account for the year ended 30 June 2018?

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