1. (a) In March 2017, the company received an amended assessment from the ATO for the year
ended 30 June 2016 indicating that an amount of $4500 claimed as a deduction for legal
expenses had been disallowed. The company has not yet adjusted its accounts to reect the
amendment.
(b) For tax purposes the carrying amount of plant sold was $26 000. There were no other
disposals or acquisitions of plant during the year.
(c) The tax deduction for plant depreciation was $28 800. Accumulated depreciation at 30 June
2016 for taxation purposes was $156 480.
(d) The tax rate is 30%.
Required
A. Prepare the current tax worksheet for the year ended 30 June 2017and the entries to record the
current tax.
C. Explain your treatment of annual leave expense in the current tax worksheet.
C. What would be the journal entry for current tax for the year ended 30 June 2017 if the
company had previously recognised a deferred tax asset for carried forward tax losses of $18
400? The accounting profit before tax of She Said Ltd for the year ended 30 June 2017 was
$24000 and included the income and expense items shown below. The statements of financial
position of She Said Ltd as at 30 June 2017 and 2016 included the following assets and
liabilities: