Additional information. 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt expense for the year ended 2020 amounted to $350. 4. A payment of $3,000 was made to Rail Insurance Ltd. 5. Interest income recognized for the year ended 2020 is $700. 6. Land was revalued to its fair value in 2020. 7. Warranty and interest expenses for the current period are $250 and $300, respectively. 8. Half of the deferred tax asset amount is due to tax loss in 2019, which will be recouped in 2020. 9. The accounting profit before tax for the year ended 30 June 2020 is $38,000. 10. There are no other differences between accounting profit before tax and taxable income to account for. 11. The tax rate is 30%. Required: Prepare a deferred tax worksheet for the year ended 30 June 2020, and associated journal entries in accordance to IAS 12/AASB 112 Income Taxes.

Additional information. 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt expense for the year ended 2020 amounted to $350. 4. A payment of $3,000 was made to Rail Insurance Ltd. 5. Interest income recognized for the year ended 2020 is $700. 6. Land was revalued to its fair value in 2020. 7. Warranty and interest expenses for the current period are $250 and $300, respectively. 8. Half of the deferred tax asset amount is due to tax loss in 2019, which will be recouped in 2020. 9. The accounting profit before tax for the year ended 30 June 2020 is $38,000. 10. There are no other differences between accounting profit before tax and taxable income to account for. 11. The tax rate is 30%. Required: Prepare a deferred tax worksheet for the year ended 30 June 2020, and associated journal entries in accordance to IAS 12/AASB 112 Income Taxes.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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Use the table for the question(s) below. Consider the following balance sheet: Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions) Assets 2019 2018 Liabilities and Stockholders' Equity 2019 2018 Current Assets Current Liabilities Cash 63.6 58.5 Accounts payable 87.6 73.5 Accounts receivable 55.5 39.6 Notes payable / short−term debt 10.5 9.6 Inventories 45.9 42.9 Current maturities of long−term debt 39.9 36.9 Other current assets 6.0 3.0 Other current liabilities 6.0 12.0 Total current assets 171.0 144.0 Total current liabilities 144.0 132.0 Long−Term Assets Long−Term Liabilities Land 66.6 62.1 Long−term debt 239.7 168.9 Buildings 109.5 91.5 Capital lease obligations −−− −−−…
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