The profit before tax, reported in the statement of comprehensive income of Mexis Ltd for the year ended 30 June 2021 :

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The profit before tax, reported in the statement of
comprehensive income of Mexis Ltd for the year ended 30 June
2021
:
amounted to
4,050,000
Service revenue
126000
Prize money
227000
Doubtful debts expense
25000
Depreciation (Vehicle)
164500
Depreciation (Buildings)
40000
Maintenance expense
113000
Warranties expense
75000
Insurance expense
37000
Government issued fine
63200
The draft statements of financial position of the company at 30
June 2021 and 2020 showed the following assets and liabilities:
2021 ($)
2020 ($)
Assets
Cash
265,000
291,000
Inventory
569,000
518,000
Accounts Receivable
1,645,000
1,569,000
Allowance for doubtful debts
-131,000
-121,000
Prepaid Insurance
70,000
65,000
Vehicle
1,645,000
1,645,000
Accumulated Depreciation - Vehicle
-658,000
-493,500
Buildings
1,012,000
1,012,000
Accumulated depreciation - Buildings
-405,000
-364,000
Land
632,000
632,000
Patents
253,000
253,000
Deferred tax asset
?
37,275
Liabilities
Accounts Payable
961,000
860,000
Provision for maintenance
202,000
151,000
Provision for warranties
139,000
101,000
Service revenue received in advance
88,000
63,000
Deffered tax liability
?
0
Additional Information:
Service revenue is tax assessable when it is received in
cash
Prize money is not tax assessable
Doubtful debts are tax deductible when the company actually
incurs bad debts/write off
For accounting purpose, the vehicle is depreciated using the
annual straight line method at a rate of: 10%
For tax purpose, however, the vehicle is depreciated using the
annual straight line method @ 15%
Depreciation on of buildings is not allowed as tax deductions
and patents are not tax assesable
Warranties are tax deductible when they are paid in cash to
affected customers
Insurance expense and maintenance expense are tax deductible
when paid in cash
Government issued fine is not allowed as tax deduction
Assume a tax rate for the financial years ending 30 June 2020
and 2021 to be: 30%
Required:
Calculate the taxable income / tax loss and the current tax
liability (if any) for the financial year ended 30 June 2021.
Prepare a journal entry to recognise the current tax liability /
tax loss.
Calculate deferred tax asset and deferred tax liability balances
as at 30 June 2021.
Prepare deferred tax journal entries for the year ended 30 June
2021.
Note: you are NOT required to prepare journals to offset the
deferred tax asset and deferred tax liability balances.
Show your calculation using deferred tax worksheets by creating
separate columns for:
Carrying amount, tax base, taxable temporary differences and
deductible temporary differences.
Assume that by 1 December 2021 there was a change in tax rate
to: 27.50%
With reference to AASB112 Income Taxes, discuss the accounting
treatment of the deferred tax asset and deffered tax liability
Balances at 1 December 2021 following a lower tax threshold for
the 2021-2022 financial year.
Prepare thejournal entries to record the effect of change in tax
rate.