Prepare the relevant journal entry to account, Cost Accounting

Assignment Help:

The following information is provided to you concerning Lydia Ltd as at 30 June 2012.  Assume a company tax rate of 30%.

(i) The balance of rent received in advance in the balance sheet as at 30 June 2012 amounted to $3 500.

(ii) Non current assets in the balance sheet as at 30 June 2012 included machinery with an original cost of $37 500 and accumulated depreciation amounting $10 000.  For taxation purposes the asset has a net value (after accumulated tax depreciation) of $22 500.

Required

For each of the above:

(i)  Using the appropriate formula per AASB 112, calculate the relevant tax base.

(ii) Prepare the relevant journal entry to account for any future tax consequences assuming the carrying amount in the balance sheet is not the same as the tax base for the corresponding asset or liability


Related Discussions:- Prepare the relevant journal entry to account

Cost estimation methods, using the high low method how do i calculate the c...

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

Estimate the conversion value- stock price volatility, (a)  (i) Conversi...

(a)  (i) Conversion Value Conversion Value = Conversion Ratio * Stock Price                 = 22*$40 = $880 (ii) Market Conversion Price Market Conversion Price =

How much are your fixed costs, 1.    The following table summarizes the sho...

1.    The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital i

Overhead costs, Overhead Costs Introduction Overhead costs may be...

Overhead Costs Introduction Overhead costs may be defined like the net cost of indirect materials, indirect expenses and indirect labour. They may happen or be charged to

Analysis of stockholders'' equity , Analysis of stockholders equity: S...

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

Why is it important for financial statements, Why is it important for finan...

Why is it important for financial statements and other external reports to be based on generally accepted accounting principles?

Compute the industry volume variance for each product, The next year's budg...

The next year's budget for Benny, Inc., is given below: Product 1 & 2 Sales $945,000 & 688500 Variable costs 459,900 & 297,000 Fixed costs 300

What is subphylum uniramia, Tlie subphylum is called Uniramia because of t...

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

Inventory systems, Find a journal article online about just-in-time invento...

Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi

Material sampling - analyszing direct materials cost, A. Material Sampling ...

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pro

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd