FAC3761 ASSIGNMENT 1
2021
SUGGESTED ANSWERS
,PLAGIARISM
IS STRICTLY
PROHIBITED!
, Fac3761 Assignment 1 (2021)
UNIQUE NUMBER: 825173
(a)
TSUBA LTD
Calculation of correct profit before tax
Profit before tax 2 141 718
Change in accounting estimate [(3 247 200 - 2 684 000) - (5 500 000 - 2
684 000 - 400 000)/3] (242 133)
Decrease in cost of sales (23 000 - 13 000) 10 000
Profit before tax 1 909 585
(b) Deferred tax calculation
Carrying Temporary
amount Tax base difference
Revenue received in advance (63 000) - (63 000)
Prepaid rental (150 000 x 1/3) 50 000 - 50 000
Cigarette-making machine (Calc 1; 2) 2 010 667 1 100 000 910 667
Inventory 301 000 278 000 23 000
Deferred tax liability
2021
SUGGESTED ANSWERS
,PLAGIARISM
IS STRICTLY
PROHIBITED!
, Fac3761 Assignment 1 (2021)
UNIQUE NUMBER: 825173
(a)
TSUBA LTD
Calculation of correct profit before tax
Profit before tax 2 141 718
Change in accounting estimate [(3 247 200 - 2 684 000) - (5 500 000 - 2
684 000 - 400 000)/3] (242 133)
Decrease in cost of sales (23 000 - 13 000) 10 000
Profit before tax 1 909 585
(b) Deferred tax calculation
Carrying Temporary
amount Tax base difference
Revenue received in advance (63 000) - (63 000)
Prepaid rental (150 000 x 1/3) 50 000 - 50 000
Cigarette-making machine (Calc 1; 2) 2 010 667 1 100 000 910 667
Inventory 301 000 278 000 23 000
Deferred tax liability
