Jamie Ltd’s profit before tax for the year ended 30 June 2020 was
Question 1: Topic 1 – Accounting for Company tax Jamie Ltd’s profit before tax for the year ended 30 June 2020 was $172,400. Included in this profit are the following items of income and expense: Amortisation of development costs $12,000 Carrying amount of equipment sold 11,000 Depreciation – building (6%) 15,000 Depreciation – equipment (15%) 15,000 Depreciation – motor vehicle (20%) 5,800 Doubtful debts expense 1,700 Employee benefits expense 7,000 Entertainment expense 3,500 Fines and penalties 4,400 Goodwill impairment 2,000 Insurance expense 1,400 Interest revenue 800 Proceeds on sale of equipment 19,000 Rent revenue 15,000 Royalty revenue (exempt income) 3,000 Warranty expense 7,000 At 30 June, the company’s draft statements of financial position showed the following balances: 2020 2019…
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