Skylar Ltd commenced operations on $1$ July $2020.$ It disclosed a net profit before tax of $$90,000$ for the year ended $30$ June $2021.$

This profit was determined after charging the following items:

Impairment loss$-$ goodwill $$4,000$

Depreciation of Plant & Equipment $$15,000$

Depreciation of motor vehicles $$5,000$

Doubtful Debts $$5,000$

Increase in Provision for Employee Entitlements $$12,000$

On $30$ June $2021,$ the accounting and taxation records disclosed the following:

Carrying Amount Tax Base

ASSETS

Plant & Equipment

Accumulated Dep$$n:

Motor Vehicles

Accumulated Dep$$n:

Cash

Accounts$-$Receivable $($Net$)$

LIABILITIES

Accounts$-$Payable

Prov$$n for Employee Entitlements

NET ASSETS

$60,000$

$-15,000$

$30,000$

$-5,000$

$45,000$

$25,000$

$20,000$

$85,000$

$175,000$

$50,000$

$42,000$

$92,000$

$83,000$

$60,000$

$-20,000$

$30,000$

$-7,500$

$40,000$

$22,500$

$20,000$

$90,000$

$172,500$

$50,000$

$30,000$

$80,000$

$92,500$

$$

Additional information:

The plant and equipment, which cost $60,000$ was purchased on $1$ July $2020$ and is being depreciated at $25\%$ for accounting purposes and at $33-1/3\%$ for tax purpose.

The doubtful debts are not allowed for tax purposes.

There were no employee entitlements taken during the $2021$ financial year.

The motor vehicle, which was purchased on $1$ July $2020$ and cost $$30,000$ is depreciated over $6$ years for accounting purposes and over $4$ years for tax purposes. Assume straight line depreciation with NIL salvage value.

Impairment loss for goodwill is not allowable as a tax deduction.

Required tasks $($Use Excel spreadsheet to display your answer$)$:

a$)$ Prepare a statement of taxable income for the year ended $30$ June $2021.$

b$)$ Calculate Deductible temporary differences

c$)$ Calculate Taxable temporary differences

d$)($Prepare journal entries for income tax expense in accordance with AASB$112.($The rate of company tax is $30\%)$