Reference no: EM133165116
Question - The following data applies to company A Ltd: All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.
Profit before tax for the year to 30 June 2019 $1,557,500
Taxable income for the year to 30 June 2019 $2,205,000
Deferred tax liability 1 July 2018 $87,500
Deferred tax asset 1 July 2018 $59,500
Taxable temporary differences at 30 June 2019 $840,000
Deductible temporary differences at 30 June 2019 $322,000
Required -
1 - Prepare journal entries to record current tax for 30 June 2019.
2 - Prepare journal entries to record deferred tax for 30 June 2019.