Provider Ltd has the following accounts recorded at the year ended 30 June 2023: (i) Wage...
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Accounting
Provider Ltd has the following accounts recorded at the year ended 30 June 2023:
(i) | Wage payable | $ 4,000 |
(ii) | Accounts receivable | $30,000 |
|
| LESS - Allowance for doubt debts | $ 6,000 |
|
|
| $24,000 |
(iii) | Plant | $200,000 |
|
| Acc. depreciation - Plant | $ (50,000) |
|
| Carrying amount | $ 150,000 |
|
| The tax base available was $120,000. |
|
|
- The income tax rate is 30%. Assume the opening balances of the deferred tax accounts were $0.
Required
Identify what temporary differences (i.e., taxable or deductible) arise from each account and calculate the deferred tax liability or deferred tax asset corresponding to each account. (Note: The preparation of the deferred tax worksheet is not required. You are only required to show the workings for calculation of each account).
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