Reference no: EM132645774

The following information was extracted from the records of Gin Gin Ltd for the year ended 30June 2018.

                                                           GIN GIN LTD

                          Statement of Financial Position (extract)

                                             as at 30 June 2018

Assets

Accounts receivable                       $25,000

Allowance for doubtful debts             (2,000)                $23,000

Machines                                         100,000

Accumulated depreciation - machines  (25,000)               75,000

Liabilities

Interest payable                                  1,000

Additional information

(a) The accumulated depreciation for tax purposes at 30 June 2018 was $50 000.

(b) The tax rate is 30%.

Required

Problem 1: Prepare a deferred tax worksheet to identify the temporary differences arising in respect of the assets and liabilities in the statement of financial position, and to calculate the balance of the deferred tax liability and deferred tax asset accounts at 30 June 2018. Assume the opening balances of the deferred tax accounts were $0