Question

Answered step-by-step

Asked by ramansandhu0909 on coursehero.com

On 1 July 2017, Bright Star Ltd was incorporated. The accounting profit and other relevant information of Bright Star for the two years to 2019 are as follows: 2019 2018 Profit before tax $4 500 000 $3 600 000 Warranty expense — 1500 000 Depreciation expense - machinery 60 000 60 000 Gain on sale of machinery for accounting — — Warranty paid 750 000 — Tax depreciation - machinery 90 000 90 000 Gain on sale of machinery for tax — — Provision for warranty - carrying amount 750 000 1500 000 Provision for warranty - tax base — — Machinery - carrying amount 180 000 240 000 Machinery - tax base 120 000 210 000 The company tax rate is 30%. Required (a) Calculate the current and deferred tax of Bright Star Ltd for each year, 2018 and 2019 (4 marks) (b) Prepare the required tax journal entries for each year. (3 marks)

Solved by verified expert

Answered by TutorDada on coursehero.com

<figure class="table">sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consec</figure>

Unlock access to this and **over 10,000 step-by-step explanations**

Have an account? Log In

<figure class="table"><table><tbody><tr><td><p style="margin-left:0px;"><br/><strong><u>sectetur adipisc</u></strong></p></td><td> </td><td> </td></tr><tr><td><p style="margin-left:0px;"><strong>sect</strong></p></td><td><p style="margin-left:0px;"><strong>sectetur ad</strong></p></td><td><p style="margin-left:0px;"><strong>sec</strong></p></td></tr><tr><td>sect</td><td>sectetur ad</td><td>sectetur adipi</td></tr><tr><td> </td><td>sectetur adipiscing elit</td><td> </td></tr><tr><td> </td><td>sectetur adipiscing</td><td> </td></tr><tr><td> </td><td>sectetur adipiscing elit. Nam lacinia pulvinar</td><td> </td></tr><tr><td> </td><td> </td><td> </td></tr><tr><td>sect</td><td>sectetur ad</td><td>sectetur adipi</td></tr><tr><td> </td><td>sectetur adipiscing elit</td><td> </td></tr><tr><td> </td><td>sectetur adipiscing</td><td> </td></tr><tr><td> </td><td>sectetur adipiscing elit. Nam lacinia pulvinar</td><td> </td></tr></tbody></table></figure>

Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access