BUACC5932 CORPORATE ACCOUNTINGMajor Assignment Semester 1 2014PART AThe following information is provided in respect of Fedyou Ltd for calculation of income tax as required by Accounting Standard


Major Assignment

 Semester 1 2014


The following information is provided in respect of Fedyou Ltd for calculation of income tax as required by Accounting Standard AASB112 Income Taxes

Fedyou Ltd commenced operations on 1 July 2007 with an issued share capital of $700,000. On that date the company purchased a number of property plant and equipment (PPE) assets, details of which are provided below:


Land          Plant        Computers    Vehicles

Cost                      $100,000   $200,000    $100,000      $50,000



Accounting                 –              15%             25%             30%

Tax                             –               10%             50%             40%

Method                                   Straight        Straight          Straight

Line             Line               Line

Carrying Amount

30 June 2008       150,000       170,000        75,000          35,000


The Statement of Profit and Loss for the year ended 30 June 2008 was as follows:


Sales                                                                                  $520,000

Interest Revenue                                                                   40,000

Government Grant (exempt from tax)                                  40,000

Total Revenue                                                                     600,000


Cost of Goods Sold                                      200,000

Salaries and Wages                                        60,000

Depreciation Plant                                         30,000

Depreciation Computers                                25,000

Depreciation Vehicles                                   15,000

Rent                                                               18,000

Doubtful Debts                                              30,000

Insurance                                                         5,000

Long Service Leave                                        3,000

Other Expenses                                               9,000

Total Expenses                                                                  395,000


Profit before Tax                                                               205,000


Additional Information:

  • The current tax rate is 30%
  • Insurance of $23,000 was paid during the year. Of this amount $18,000 was considered to be prepaid for the coming financial year
  • Rent is paid in arrears. $10,000 is due at end of current year and $8000 has been paid in cash.
  • Interest Revenue will be received in the coming financial year.
  • No bad debts were written off during the current year
  • No payments for long service leave were made during the current year.


At 30 June 2008 the Statement of Financial Position of Fedyou Ltd was as follows:


Assets                                                                              $’000

Cash                                                                                   805

Prepayments                                                                        18

Receivables                                           300


Allowance for Doubtful Debts               30                       270

Inventory                                                                           170

Property Plant and Equipment              500


Accumulated Depreciation                    70                        430

Interest Receivable                                                              40

Total Assets                                                                     1733



Accounts Payable                                                              280

Accrued Expenses                                                               10

Loan                                                                                  485

Long Service Leave Provision                                              3

Deferred Tax Liability                                                        15

Total Liabilities                                                                 793



Share Capital                                                                     700

Retained Profits                                                                 205

Asset Revaluation Surplus                                                  35

Total Equity                                                                       940

Total Liabilities and Equity                                             1733


Additional information:

  • Land was revalued upward by $50,000 at 30 June 2008
  • The written down values for tax purposes at 30 June 2008 for other PPE assets were Plant $180,000, Computers $50,000 and Vehicles $30,000.



  •  Calculate taxable income and current tax liability for Fedyou Ltd for year ended 30 June 2008 including journal entry to record these amounts (show all workings)
  • Prepare a deferred tax worksheet to calculate the balances of any deferred tax assets and liabilities at 30 June 2008 and prepare required journal entry.



Refer to the attached extracts from the Wannon Water 2012/2013 Annual Report:

  • Comprehensive Operating Statement
  • Balance Sheet
  • Note 5: Income Tax


What recognition criteria for deferred tax liabilities and assets must Wannon Water meet in order to recognise the net deferred tax liability of $36.879 million in its accounts?



At 30 June 2009 Fedyou Ltd undertook a comprehensive valuation of all of its PPE assets. The results of the revaluation exercise were as follows:


Asset                                                   Fair Value 30 June 2009


Land                                                         $140,000

Plant                                                           120,000

Computers                                                   45,000

Vehicles                                                      25,000



Having regard to the requirements of Accounting Standard AASB116 Property Plant and Equipment and AASB136 Impairment of Assets prepare the journal entries required (including tax effects) if the assets were revalued to fair value at 30 June 2009



Under current accounting standards revaluation increments on PPE assets are credited to a revaluation surplus account in equity, whereas a revaluation decrement may be recognised as an expense under certain circumstances.



Explain and critically evaluate these requirements



PART A    6 + 6                  = 12 marks


PART B                              =   3 marks


PART C                              =   3 marks


PART D                             =    2 marks


Total                                  = 20 marks


Key assignment details and assessment criteria:


  1. Maximum length 300 words each (for PART B and PART D )


Assessment Criteria

The criteria used to assess the submitted assignment will be:


  • Evidence of relevant research and demonstrated understanding of research materials. As a minimum students should consult the references listed under additional resources in the Unit Description
  • The structure, coherence and logic of arguments and analysis presented.
  • Demonstrated understanding of the subject matter that is the focus of the assignment topic.
Homework Market
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Homework Market


Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Homework Market

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.


Unlimited Revision

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.


Timely Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.


Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.


Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Homework Market

Place your order

Fill in the order form and provide all details of your assignment.

Homework Market

Proceed with the payment

Choose the payment system that suits you most.

Homework Market

Receive the final file

Once your paper is ready, we will email it to you.

Homework Market Writing Services

No need to work on essay at night. Sleep tight, we will cover your back. We offer all kinds of essay writing services.

HomeworkMarket HomeworkMrket


Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

HomeworkMarket HomeworkMarket


Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

HomeworkMarket HomeworkMarket


Essay Editing

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

HomeworkMarket HomeworkMarket

Research Paper

Research Paper

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.