RMIT Classification: Trusted
ACCT 2178 – Contemporary Financial & Integrated Reporting
Assessment Task Two: Session 2, 2020
Weekly Work
Marks: 35% of total assessment
Weekly Work generally
Weekly Work will consist of different tasks relating to a particular module, including:
1) contributing to discussions on the discussion board on questions relating to the module;
2) submitting answers to questions relating to the module in the assignment box on Canvas; o
3) a combination of 1) and 2), that is contributing to discussions on the discussion board on particular question(s) relating to the module and submitting answers to other questions relating to the same module in the assignment box on Canvas.
Contribution of Weekly Work towards your Final Assessment in ACCT 2178
Module
Contribution to your Final Assessment
Module 1
3%
Modules 2, 4, 5, 6, 7, 8, 9, and 10
4% each for 8 different Modules: 4% x 8 modules
32%
Total Contribution of Weekly Work towards your Final assessment in ACCT 2178
35%
Weekly Work for Module 7: submit an answer to the question below on Canvas
Weekly Work relating to Module 7 counts as 4% towards your final assessment in ACCT 2178.
For Module 7, you need to submit an answer to the questions below relating to module 7 in the assignment box on Canvas.
Question 1: Submit to Assignment Box Question [3% of your Final Assessment]
Kali Ltd reported a Profit before Income Tax Expense of $1,700,000 for the year ended 30 June 2020.
Additional Information
1) On 1 July 2016, Kali Ltd purchased a building at a cost of $3,000,000. For accounting purposes, the building is depreciated on a straight-line basis over 30 years, with zero residual value. For income tax purposes the building is depreciated 5% on cost per annum.
2) On 30 June 2019, the balance of the provision for wa
anty expenditure in Kali Ltd’s accounts was $450,000. During the year ending 30 June 2020, Kali Ltd provided an additional $250,000 for wa
anty expenditure, and paid wa
anty expenditure of $290,000. For income tax purposes, wa
anty expenditure is deductible when it is paid.
3) On 9 September 2015, Kali Ltd purchased Land at a cost of $950,000. On 30 June 2020, the land was revalued to $1,300,000.
4) On 30 June 2020, Kali Ltd recognised a goodwill impairment loss expense of $320,000. For income tax purposes, goodwill impairment loss is not tax deductible.
5) The company income tax rate is 30%.
Required:
a) Calculate the balance of the defe
ed tax assets and defe
ed tax liabilities at 30 June 2019 and 30 June 2020 for Kali Ltd, in accordance with AASB112: Income Taxes. Show all workings necessary to derive your answer.
) Calculate taxable income and income tax payable for Kali Ltd for the financial year ending 30 June XXXXXXXXXXShow all workings necessary to derive your answer.
c) Prepare the journal entry for Kali Ltd, to record income tax for the financial year ending 30 June 2020, in accordance with AASB112: Income Taxes. Show all workings necessary to derive your answer.
Advice:
For examples of solutions to income tax questions, see Question 3, ACCT 2178 Session 3, 2018 Exam and Exam Solution; Question 3, ACCT 2178 Session 2, 2018 Exam and Exam Solution; and Question 3, ACCT 2178 Session 3, 2017 Exam and Exam Solution.
Past Exams and Exam Solutions are located on the ACCT 2178 Canvas site in “Modules”, scroll to the bottom to “Extra Resources”, where you will find “Past Exams and Solutions – ACCT 2178”.
Question 2: Submit to Assignment Box Question [1% of your Final Assessment]
Refer to Cochlear Ltd’s Annual Report 2020: https:
www.cochlear.com/au/en/corporate/investors/annual-reports
What are the amounts of Defe
ed Tax Assets and Defe
ed Tax Liabilities disclosed by Cochlear Ltd at 30 June 2020? Explain the rationale for the amounts of Defe
ed Tax Assets and Defe
ed Tax Liabilities recognised by Cochlear Ltd, using the information provided by Cochlear Ltd, in its notes to financial statements.
Due Date:
Monday, 21 September 2020
ACCT 2178, Weekly Work, Module 7 Study Session 2, 2020