Reference no: EM133165116

Question - The following data applies to company A Ltd: All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.

Profit before tax for the year to 30 June 2019 $1,557,500

Taxable income for the year to 30 June 2019 $2,205,000

Deferred tax liability 1 July 2018 $87,500

Deferred tax asset 1 July 2018 $59,500

Taxable temporary differences at 30 June 2019 $840,000

Deductible temporary differences at 30 June 2019 $322,000

Required -

1 - Prepare journal entries to record current tax for 30 June 2019.

2 - Prepare journal entries to record deferred tax for 30 June 2019.