you mustFIRSTenter your student ID on the excel spreadsheet ( CELL B2) prior to working on the...

Question

you mustFIRSTenter your student ID on the excel spreadsheet ( CELL B2) prior to working on the assignment. This would then generate adifferent set of valuesfor each student depending on their unique student ID number.

We have hadissueswith students entering or changing their student IDafterthey've completed the assignment and by doing so would distort the values.

Please also check that you've entered the correct student ID as the solutions used to mark your attempt will be generated based on this number.

Student ID : XXXXXXXXXX

tae_636726550471409067_121388_1.pdf tae_636726550471409067_121388_2.xlsx

Abr Writing · Accepted Answer

Background information
		Student ID
	input student ID here	217631534		PART A
				The profit before tax, as reported in the statement of comprehensive income of Arkibath Ltd (an Australian building services company) for the year ended 30 June 2018
				amounted to:	$3,900,000
				including the following revenue and expense items:
				Rent Revenue	$121,000
				Government grant received	$219,000
				Doubtful debts expense	$24,000
				Depreciation (Plant)	$158,400
				Depreciation (Buildings)	$39,000
				Long-service leave expense	$109,000
				Annual leave expense	$73,000
				Office supplies expense	$36,000
				Entertainment expense	$60,900
				The draft statements of financial position of the company at 30 June 2018 and 2017 showed the following assets and liabilities:
					2018 ($)	2017 ($)
				Assets
				Cash	$255,000	$280,000
				Inventory	$548,000	$499,000
				Accounts Receivable	$1,584,000	$1,511,000
				Allowance for doubtful debts	-$126,000	-$117,000
				Office Supplies	$68,000	$63,000
				Plant	$1,584,000	$1,584,000
				Accumulated depreciation - Plant	-$633,600	-$475,200
				Buildings	$975,000	$975,000
				Accumulated depreciation - Buildings	-$390,000	-$351,000
				Land	$609,000	$609,000
				Goodwill (net)	$243,000	$243,000
				Deferred Tax Asset	?	$35,820
				Liabilities
				Accounts Payable	$926,000	$828,000
				Long service leave payable	$195,000	$146,000
				Annual leave payable	$134,000	$97,000
				Rent received in advance	$85,000	$60,000
				Deferred Tax Liability	?	$0
			Additional Information:
			a)	Rent revenue is tax assessable when it is received in cash
			b)	Government grant is not tax assessable
			c)	Doubtful debts are tax deductible when the company actually incurs bad debts/write off
			d)	For accounting purpose, plant is depreciated using the straight line method at a rate of:			10%	per annum
				For tax purpose, however, the plant is depreciated on:			15%	per annum
			e)	Depreciation of buildings and entertainment costs are not allowed as tax deductions
			f)	Employee entitlements such as long service and annual leave are tax deductible when they are paid in cash to the employees
			g)	Office supplies are tax deductible when it is paid in cash
			h)	Entertainment expenses are not allowed as tax deductions
			i)	Aggregated turnover for the year ended 30 June 2017 and 2018 is in excess of $25million and it is expected that turnover will exceed $50million in the year ended 30 June 2019
			Required:
			1)	Calculate the taxable income/tax loss and the current tax liability (if any) for the financial year ended 30th June 2018. Prepare a journal entry to recognise the current tax liability/tax loss.
			2)	Calculate deferred tax asset and deferred tax liability balances as at 30th June 2018. Prepare the deferred tax journal entries for the year ended 30th June 2018. Note that you are NOT required to prepare journals to offset the deferred tax asset and deferred tax liability balances.

you mustFIRSTenter your student ID on the excel spreadsheet ( CELL B2) prior to working on the assignment. This would then generate adifferent set of valuesfor each student depending on their unique...

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