Reference no: EM132933309

The accounting profit before tax for Fleetwood Ltd for the year ended 30 June 20X7 was $800,000. Items of income and expense included in the accounting profit for Fleetwood Ltd that were treated differently for tax purposes are:

Interest Revenue
Depreciation Expense for Plant
Long Service Leave Expense

Additional information is provided for the following items:

1. Interest revenue of $190,000 is included in the accounting profit. Interest is assessable for tax purposes when it is received. The balance of the Interest Receivable account at 1/7/X6 was $53,000 and at 30/6/X7 was $50,000.
2. Plant was purchased on 1 July 20X4 for $300,000. The plant has zero residual value and is depreciated using straight-line method for both accounting and tax purposes. The plant has an expected useful life of 8 years for accounting purposes and 4 years for tax purposes.
3. Long service leave expense of $152,000, is included in the Accounting Profit. Long service leave is deductible for tax purposes when the leave is paid to employees. The balance of the Provision for Long Service Leave account at 1/7/X6 was $320,000 and at 30/6/X7 was $420,000.
4. The company reported a tax loss of $120,000 for the year ended 30 June 20X6. The loss was recognised as a Deferred Tax Asset in the Statement of Financial Position for the company as at 30 June 20X6. The Tax Loss has been carried forward and will be used to reduce Taxable Profit for the year ended 30 June 20X7.
5. The income tax rate is 30% per annum.

Problem 1: Calculate the current tax payable, show all working