Present the general journal entries

1. Illustrate the importance of good machinery management on farms and ranches

2. Identify the costs associated with owning and operating agricultural machinery

3. Demonstrate procedures for calculating machinery costs

4. Discuss important factors in machinery selection, including size, total cost, and timely completion of operations

On 29 June 2018, Audacious Ltd had a deferred tax asset of $300000 arising from unused tax losses. There were no other deferred tax assets or deferred tax liabilities. For the year ended 30 June 2018 the company’s taxable income (before adjusting for tax losses carried forward) was $2250000. The company tax rate was 30%.

Required

Present the general journal entries to record income tax expense for the year ended 30 June 2018.

Solution: