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Bill Clinton Ltd commenced operations on the 1st of July 2021. He presented its first statement of profit and loss, other comprehensive income, and the first statement of position on the 30th of June 2022. The statements are prepared before considering taxation. The following information is available.

Statement of profit and loss and other comprehensive income for the year ended 30th of June 2022.
Details	$	$
Gross profit		730 000
Expenses:
Administrative expenses	80 000
Salaries	200 000
Long-Service Leave	20 000
Warranty expenses	30 000
Depreciation expense - Plant	80 000
Insurance	20 000
Total expenses		430 000
Accounting profit before tax		300 000
Other comprehensive income		Nil

Assets and liabilities as disclosed in the statement of financial position as at the 30th of June 2021
Details	$	$
Assets:
Cash		20 000
Inventory		100 000
Accounts receivable		100 000
Prepaid insurance		10 000
Plant Cost	400 000
Less: Accumulated Depreciation	80 000	320 000
Total assets		550 000
Liabilities:
Accounts Payable		80 000
Provision for warranty expenses		20 000
Loan payable		200 000
Provision for long service leave expenses		20 000
Total liabilities		320 000
Net assets		230 000

Additional Information:

• All administration and salaries expenses incurred have been paid as at year end.
• None of the long service leave expenses has actually been paid.
• Warranty expenses were accrued, and at year end, actual payments of $10 000 have been made (leaving an accrued balance of $20 000).
• Insurance was initially prepaid to the amount oof $30000. At the year end, the unused component of the prepaid insurance amounted to $100 000.
• Amounts received from sales, including those on credit terms, are taxed at the time of sale is made.
• The plant is depreciated over five years for accounting purposes, but over four years for taxation purposes.

The tax rate is 30 per cent.

required:

1. Calculate the taxable income of Bill Clinton Ltd for the year ended the 30th of June 2022. [5 marks]
2. Prepare the Journal entry to record the current tax liability for the year ending 30th of June 2022. [2 marks]
3. MAKE a deferred tax worksheet for the 30th of June 2022. (13 MARKS)
4. Prepare the journal entries to record any deferred tax assets and liabilities at the 30th of June 2022. [5 marks]

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