W5QUESTIONS - Week 5 Tax Effect Accounting Lecture Question...

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Week 5 Tax Effect Accounting – Lecture Question Noah Ltd Income Statement Year Ending 30 June 2008 Income Sales 105 000 Government Grant 5 000 Proceeds on Sale of Plant 23 000 133 000 Expenses Carrying amount of Plant 20 000 Goodwill Impairment 11 100 Doubtful Debts Expense 8 100 Depreciation Expense _ Plant 14 000 Insurance Expense 12 900 Annual Leave Expense 10 500 Warranty Expense 4 000 Other Expenses 30 160 155 240 Profit before tax 22 240 Balance Sheet (excerpt) As at 30 June 2008 2008 2007 Assets Cash 6 000 18 000 Receivables 96 000 85 000 Provision for Doubtful Debts (6 800) (5 200) Prepaid Insurance 3 400 5 600 Plant 140 000 170 000 -Accumulated depreciation (Plant) (32 000) (28 000) Goodwill (net) 11 100 22 200 Deferred Tax Asset (DTA) ? 4 540 Liabilities Accounts Payable 78 000 76 000 Annual Leave Payable 8 000 3 500 Provision for Warranty 5 200 6 200 Current Tax Liability ? - Deferred Tax Liability (DTL) ? 3 780 Additional Information a) For tax purposes the carrying amount of the Plant sold was $15 000
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This note was uploaded on 12/13/2010 for the course ACCY 201 taught by Professor Kevin during the Three '09 term at University of Wollongong, Australia.

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W5QUESTIONS - Week 5 Tax Effect Accounting Lecture Question...

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