2. Please solve the following Numerical and send the solution
A. Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine is expected to have a useful
life of 5 years (straight-line basis) and no residual value. For taxation purposes, the ATO allows the company to
depreciate the asset over 4 years.
The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the
company has deducted $60,000 entertainment expense, and $80.000 salary expense that has not yet been paid.
Also the company has included $70,000 interest as income that the company has not yet received. The tax rate
is 30%
Required
(a) Calculate the company's taxable profit and hence its tax payable for 2017
(b) Determine the deferred tax liability and/or deferred tax asset that will result
(c) Prepare the necessary journal entries on 30 June 2017
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Answers
Explanation:
TTs091020_812554_8 Assignment Title: PFA Assignment Status: Assignment Assigned Deadline: Oct 11, 2020 11:00 AM My Proposed Deadline(s) Price (Rs.): 2200 My Proposed Price(s) [ Penalty = 0.00(0) ] Comment: PFA Attached File: 5554033_1_HI5020-Tutorial-Question-Assignment-T2-2020-Final-1--0-.pdf Student Country: Australia (E. Australia Standard Time) Subject: Accounting ? Financial Accounting ? Financial Accounting - Others Grade: University Status: Applied Edit Order Id: TTs091020_812554_8 Assignment Title: PFA Assignment Status: Assignment Assigned Deadline: Oct 11, 2020 11:00 AM My Proposed Deadline(s) Price (Rs.): 2200 My Proposed Price(s) [ Penalty = 0.00(0) ] Comment: PFA Attached File: 5554033_1_HI5020-Tutorial-Question-Assignment-T2-2020-Final-1--0-.pdf Student Country: Australia (E. Australia Standard Time) Subject: Accounting ? Financial Accounting ? Financial Accounting - Others Grade: University Status: Applied Edit