Calculate taxable income for the year ended 30 june 2021

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Question: Veemax Ltd commenced trading on 1 July 2020. The following information relates to the year ended 30 June 2021: $ Accounting profit (before tax) 85 000 After crediting as revenue: Exempt income (1) 25 000 After debiting as expenses: Depreciation on machinery 20 000 Fines and penalties 3 000 Legal fees (2) 11 000 Warranty expense 12 000 Annual leave 54 000 Allowable deductions for tax purposes: Depreciation on machinery 40 000 Warranties claimed (paid) 9 000 Annual leave paid 50 000 (1) Non-taxable for income tax purposes (2) Not allowable as a tax deduction Required: Calculate taxable income for the year ended 30 June 2021 and prepare the journal entries to recognise current and deferred tax balance. The tax rate is 30%.

Reference no: EM133419533

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