ACCT2542 讲解 、辅导 c++，Python 编程
UNSW Business School
School of Accounting, Auditing & Taxation
ACCT2542 Topic 1 Tutorial Question
This week’s topic: Tax effect accounting
For the financial year ending 30 June 20X6, Taxalot Ltd reported a before-tax operating profit of
$720,000 in its Income Statement.
Extracts of items included in the income statement:
Entertainment expense 20,000
Goodwill impairment loss 50,000
Bad debt expense $100,000
Interest Revenue 150,000
Depreciation on plant and equipment 200,000
Gain on sale of plant and equipment 70,000
Insurance expense 55,000
Interest expense 220,000
Rent revenue 55,000
Long service leave expense 320,000
The following information has been extracted from the current income tax working file of Taxalot Ltd:
Depreciation on plant and equipment for tax using the diminishing value method $260,000
Accumulated depreciation on plant and equipment for tax 2,000,000
Accumulated depreciation on plant and equipment sold during the year 90,000
Other information:
The company tax rate is 30%.
Land is accounted for on the fair value basis. During the year, Taxalot Ltd revalued land upwards
by $400,000. The revaluation increment was credited to an asset revaluation surplus.
Plant and equipment is accounted for on the cost basis. To date, no write-downs to recoverable
amount have been recorded for plant and equipment.
During the year plant and equipment was sold for $210,000. At the date of sale, the asset had an
original cost of $200,000 and accumulated depreciation of $60,000.
The deferred tax balances at 30 June 20X5 were as follows:
Deferred tax asset $159,000
Deferred tax liability $147,900
Topic 1 – Tutorial Question UNSW Business School
business.unsw.edu.au
Last Updated 05/05/204 CRICOS Provider Code 00098G
Extracts of Taxalot Ltd’s Balance Sheet for 20X5 and 20X6 are shown below.
30 June 20X6
$
30 June 20X5
$
Assets
Cash 400,000 320,000
Accounts receivable 600,000 520,000
Less: Allowance for doubtful debts (45,000) (40,000)
Interest receivable 80,000 63,000
Inventory 700,000 610,000
Prepaid insurance 28,000 20,000
Investment in debentures 1,800,000 1,800,000
Land 4,200,000 3,100,000
Plant and equipment 4,500,000 3,900,000
Less: Accumulated depreciation (1,540,000) (1,400,000)
Goodwill 250,000 250,000
Less: Accumulated goodwill impairment loss (50,000)
Liabilities
Trade creditors 300,000 280,000
Interest payable 80,000 65,000
Rent received in advance 45,000 30,000
Provision for long service leave 600,000 470,000
Loan payable 1,110,000 1,200,000
Shareholders’ Equity
Asset revaluation surplus 400,000 NIL
Required:
a) Prepare a schedule to compute the current tax liability and prepare journal entries to record
the current tax for the year ended 30 June 20X6.
b) Complete the deferred tax worksheet shown at the end of this question (insert the
completed worksheet into your solutions) and prepare journal entries to record deferred
taxes for the year ended 30 June 20X6. Show your workings.