Q1) At 30 June 2019, Beta ltd had the following deferred tax balance: Deferred tax liability $18,000 Deferred tax asset $15,000 Beta ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense-plant $7,000 Doubtful debts expense $3,000 Long-service leave expense $4,000 For taxation purpose the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation-plant $8,000 Bad debts written off $2,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: (a) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. (b) What are the balances of deferred tax liability and deferred tax asset at 30 June 2020?

Q1) At 30 June 2019, Beta ltd had the following deferred tax balance: Deferred tax liability $18,000 Deferred tax asset $15,000 Beta ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense-plant $7,000 Doubtful debts expense $3,000 Long-service leave expense $4,000 For taxation purpose the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation-plant $8,000 Bad debts written off $2,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: (a) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. (b) What are the balances of deferred tax liability and deferred tax asset at 30 June 2020?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 11P

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Q1) At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000 Deferred tax asset $15,000 Beta ltd recorded a profit before tax of $80,00 for the year to 30 June 2020, which included the following terms: Depreciation expense-plant $7,000 Doubtful debts expense $3,000 Long-service leave expense $4,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: (a) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. (b) What are the balance of deferred tax liability and deferred tax asset at 30 June 2020?
Q1) At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000 Deferred tax asset $15,000 Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense-plant $7,000 Doubtful debts expense $3,000 Long-service leave expense $4,000 For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation-plant $8,000 Bad debts written off $2,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: (a) Determine the taxable income and income tax payable for the year to 30 June 2020. (b) Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and…
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts are written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies.Required:a) Determine the taxable income and income tax payable for the year to 30 June 2020. b) Determine by what amount the balances of the deferred liability and deferred tax asset willincrease or decrease for the year to 30 June 2020 because of depreciation, doubtful debts andlong-service leave. c) Prepare the necessary journal entries to account for income tax assuming recognition…
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies. What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts are written off 2,000The depreciation rate for taxation purposes is higher than for accounting purposes. A corporate tax rateof 30% applies.Required:a) Determine the taxable income and income tax payable for the year to 30 June 2020. b) Determine by what amount the balances of the deferred liability and deferred tax asset willincrease or decrease for the year to 30 June 2020 because of depreciation, doubtful debts, and long-service leave. c) Prepare the necessary journal entries to account for income tax assuming recognition…
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies. Determine the taxable income and income tax payable for the year to 30 June 2020? Prepare the necessary journal entries to account for income tax assuming recognition criteria aresatisfied?
At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000Deferred tax asset 15,000 Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation – plant $8,000Bad debts written off 2,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
At 30 June 2019, Beta Ltd had the following deferred tax balances: Deferred tax liability $18,000Deferred tax asset 15,000 Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items: Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020: Tax depreciation – plant $8,000Bad debts written off 2,000 Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required: Determine the taxable income and income tax payable for the year to 30 June 2020. Determine by what amount the balances of the deferred liability and deferred tax asset will increase or decrease for the year to 30 June 2020 because of depreciation, doubtful debts and long-service leave.
Question At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included thefollowing items:Depreciation expense – plant $7,000Doubtful debts expense 3,000Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000Bad debts written off 2,000Depreciation ratesfor taxation purposes are higher than for accounting purposes. A corporate tax rateof 30% applies.Required:d) What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020
At 30 June 2019, Beta Ltd had the following deferred tax balances:Deferred tax liability $18,000 Deferred tax asset 15,000Beta Ltd recorded a profit before tax of $80,000 for the year to 30 June 2020, which included the following items:Depreciation expense – plant $7,000 Doubtful debts expense 3,000 Long-service leave expense 4,000For taxation purposes the following amounts are allowable deductions for the year to 30 June 2020:Tax depreciation – plant $8,000 Bad debts written off 2,000Depreciation rates for taxation purposes are higher than for accounting purposes. A corporate tax rate of 30% applies. Required a) Prepare the necessary journal entries to account for income tax assuming recognition criteria are satisfied. b) What are the balances of the deferred tax liability and deferred tax asset at 30 June 2020?
For the year ended 30 June 2022, Chilli Ltd had a taxable profit of $460 000. The following comparative information was ascertained from the tax calculations of Chilli: 2021 2022 $184 000 $68 000 Deferred tax asset Deferred tax liability $156 000 $80 000 Required: Suppose the tax rate is 30 per cent. Prepare the journal entries to account for the income tax expenses of Chilli Ltd for the year ended 30 June 2022 in accordance with AASB 112 Income Taxes.