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Preparing a current tax worksheet and the journal

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(a) Accumulated depreciation of plant for tax purposes was $30 000 at 30 June 2019, and depreciation for tax purposes for the year ended 30 June 2020 amounted to $ 6 500.

(b) The tax rate is 30%.

Prepare a current tax worksheet and the journal entry to recognise the company’s current tax liability as at 30 June 2020.

Sample Solution

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