Please show each step of calculation. Thanks in advance. 3. Prepare T accounts for the following three items: Rent receivable, Allowance for doubtfuldebts; Provision for annual leave.4. Explain how a change in the tax rate will impact on the balances of deferred tax assetsand deferred tax liabilities? Should any such change be reflected in the reported profit ofthe reporting entity when the tax rate changed? (Word limit - 300 words - use referenceswhere appropriate. The accounting profit before tax for the year ended 30 June 2023 for Augusta Ltdamounted to $28 500 and included the following:Depreciation expense motor vehicle (25% p.a., straight-line)Depreciation expense - equipment (20% p.a., straight-line)Rent revenueRoyalty revenue (non-taxable)Doubtful debts expenseEntertainment expense (non-deductible)Annual leave expenseGain on sale of equipmentThe draft statement of financial position at 30 June 2023 contained the following assetsand liabilities.AssetsCashAccounts receivableAllowance for doubtful debtsInventoriesRent receivableMotor vehicleAccumulated depreciation - motor vehicleEquipmentAccumulated depreciation - equipmentDeferred tax assetLiabilitiesAccounts payableProvision for annual leaveCurrent tax liabilityDeferred tax liabilityAdditional information$202313 20012.000(3.000)19.0002.80018.000(15.750)100.000(60.000)?15.6554.500$ 450020 00016 0005 000230015005 0001 000??$20229.80014.000(2 500)21 5002.40018.000(11-250)130.000(52 000)6.45021 5006.0008.2003.445The motor vehicle is fully depreciated for tax purposes.• The company claims tax depreciation on equipment at the rate of 15% p.a. The sale ofequipment on which a gain was recognised (see the previous point) was the only movementin the equipment account during the year and took place on 1 July 2022.• The income tax rate is 30%.

Deferred Tax Assets and Liability Financial concepts called deferred tax assets and liabilities are…

3. Prepare T accounts for the following three items: Rent receivable, Allowance for doubtful debts; Provision for annual leave. 4. Explain how a change in the tax rate will impact on the balances of deferred tax assets and deferred tax liabilities? Should any such change be reflected in the reported profit of the reporting entity when the tax rate changed? (Word limit - 300 words - use references where appropriate.

3. Prepare T accounts for the following three items: Rent receivable, Allowance for doubtful debts; Provision for annual leave. 4. Explain how a change in the tax rate will impact on the balances of deferred tax assets and deferred tax liabilities? Should any such change be reflected in the reported profit of the reporting entity when the tax rate changed? (Word limit - 300 words - use references where appropriate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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