Assignment 01
Unique: FAC3761
Due date 9 April 2021
a) Calculate correct profit before tax
2021
Profit before tax given (2141718)
Revenue (63000/2) 31500
Change in accounting estimate-dep (5500000*80%)-(5500000-2684000-400000)/2 3192000
=4400000-1208000
Inventory re-valuation (13000+23000) 36000
1117782
b) Calculation of deferred tax balances
28 February 2020
Taxable Deferred tax
Deduction assets/
Carrying Tax temporary (liability)
Amount base difference @29%
Machinery 2816000 2750000 66000 (19140)
Inventory 301000 278000 23000 (6670)
Less provisional tax 3000 (3000) 3000
Deferred tax liability 86000 (22810)
Changes in tax rate (22810*1/29) (787)
Change in tax liability at 28% 23597
1 5500000-2684000=2816000
2 5500000-(5500000/2yrs*3yrs)=2750000
, c. restated deferred tax
28 February 2020
Taxable Deferred tax
Deduction assets/
Carrying Tax temporary (liability)
Amount base difference @28%
Prepaid expense 75000 - 75000 (21000)
Income received in advance 63000 - 63000 (17640)
Machinery 2039200 - 2039200 (570976)
Deferred tax liability 2177200 (609616)
1 150000*6/12=75000
2 3247200-1208000=2039200
3 2750000-(5500000/2yrs) =0
Unique: FAC3761
Due date 9 April 2021
a) Calculate correct profit before tax
2021
Profit before tax given (2141718)
Revenue (63000/2) 31500
Change in accounting estimate-dep (5500000*80%)-(5500000-2684000-400000)/2 3192000
=4400000-1208000
Inventory re-valuation (13000+23000) 36000
1117782
b) Calculation of deferred tax balances
28 February 2020
Taxable Deferred tax
Deduction assets/
Carrying Tax temporary (liability)
Amount base difference @29%
Machinery 2816000 2750000 66000 (19140)
Inventory 301000 278000 23000 (6670)
Less provisional tax 3000 (3000) 3000
Deferred tax liability 86000 (22810)
Changes in tax rate (22810*1/29) (787)
Change in tax liability at 28% 23597
1 5500000-2684000=2816000
2 5500000-(5500000/2yrs*3yrs)=2750000
, c. restated deferred tax
28 February 2020
Taxable Deferred tax
Deduction assets/
Carrying Tax temporary (liability)
Amount base difference @28%
Prepaid expense 75000 - 75000 (21000)
Income received in advance 63000 - 63000 (17640)
Machinery 2039200 - 2039200 (570976)
Deferred tax liability 2177200 (609616)
1 150000*6/12=75000
2 3247200-1208000=2039200
3 2750000-(5500000/2yrs) =0
