Reference no: EM132715460

Question - The following information relates to Jefferson Limited for the year ended 30 June 2019.

Accounting profit before income tax $320 000

Interest revenue (all accrued, no receipts during the year) 7 000

Speeding fine (not tax deductible) 10 000

Depreciation of machinery (Note 1) 30 000

Superannuation expense (not deductible until paid: Note2) 6 000

Insurance expense (Note 3) 8 000

Income tax rate 30%

Notes:

1) Deprecation of machinery is $45,000 for tax purposes.

2) Total $5,500 has been paid during the year and $500 was payable on 30 June 2019.

3) Total $10,000 has been paid on 1 December 2018, $2,000 has been accounted as a prepaid expense asset on 30 June 2019.

4) Income received in advance on 30 June 2019 accounted for $4,000

Required - Calculate the taxable income and the current tax liability for the year ended 30 June 2019 for Jefferson Limited by reconciling accounting profit to tax profit. Also provide a journal entry for the current tax liability.