The accounting profit before tax of Baby Shark Ltd
Question 1 The accounting profit before tax of Baby Shark Ltd for the year ended 30 June 2019 was $92,550. It included the following revenue and expense items: Accounting fees $5,500 Amortisation of development costs 15,000 Carrying amount of plant sold 30,000 Depreciation expense – equipment 5,500 Depreciation expense – plant 24,000 Doubtful debts expense 8,100 Employee expense 15,400 Entertainment expense 13,200 Goodwill impairment 2,000 Government grant (exempt income) 2,200 Insurance expense 12,900 Proceeds from insurance claim for loss of profits 41,200 Proceeds from sale of plant 33,000 Warranty expense 1,500 The draft statement of financial position as at 30 June 2019 included the following assets and liabilities: 2019 2018 Assets Cash $15,500 $17,500 Trade receivable 35,000 40,500…
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