Question
In: Accounting
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine is expected to have a useful life of 5 years (straight-line basis) and no residual value. For taxation purposes, the ATO allows the company to depreciate the asset over 4 years. The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the company has deducted $60,000 entertainment expense, and $80,000 salary expense that has not yet been paid. Also the company has included $70,000 interest as income that the company has not yet received. The tax rate is 30%.
Required: (a) Calculate the company’s taxable profit and hence its tax payable for 2017. (b) Determine the deferred tax liability and/or deferred tax asset that will result. (c) Prepare the necessary journal entries on 30 June 2017.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at the cost of
$640,000. The machine is expected to have a useful life of 5 years
(straight-line basis) and no residual value. For taxation purposes,
the ATO allows the company to depreciate the asset over 4 years.
The profit before tax for the company for the year ending 30 June
2017 is $600,000. To calculate this profit the company has deducted
$60,000 entertainment expense, and $80,000 salary expense that has...
Jaguar Ltd purchased a machine on 1 July 2016 at a cost of $640,000. The machine...
Jaguar Ltd purchased a machine on 1 July 2016 at a cost of
$640,000. The machine is expected to have a useful life of 5 years
(straight line basis) and no residual value. For taxation purposes,
the ATO allows the company to depreciate the asset over 4
years.
The profit before tax for the company for the year ending 30
June 2017 is $600,000. To calculate this profit the company has
deducted $60,000 entertainment expense, and $80,000 salary expense
that...
Question 1 Week 7 (7 marks) Jaguar Ltd purchased a machine on 1 July 2016 at...
Question 1 Week 7 Jaguar Ltd purchased a machine on 1
July 2016 at the cost of $640,000. The machine is expected to have
a useful life of 5 years (straight-line basis) and no residual
value. For taxation purposes, the ATO allows the company to
depreciate the asset over 4 years. The profit before tax for the
company for the year ending 30 June 2017 is $600,000. To calculate
this profit the company has deducted $60,000 entertainment expense,
and $80,000...
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