At 30 June 2017, before the inclusion of the current period’s entries for taxation, Glasshouse Ltd recorded an accounting loss of $80 000, which included the following items: 

Depreciation of equipment 50000

Doubtful debts expense Long-service 10000

leave expense 25000

Insurance expense 21000

Other information:

•  Equipment was purchased on 1 July 2011 for $300 000. It is depreciated for accounting purposes over 6 years but for taxation purposes over 5 years. The equipment has no expected residual value.
•  The yearly insurance premium of $36,000 was paid on 1 December 2016. At the end of the financial year the unused component of prepaid insurance amounted to $15 000.
•  No payments have been made in relation to long service leave, although a bad debt of $2,000 was written off during the year.
•  Deductions are available only when amounts are paid and not as they are accrued.
•  The tax rate is 27.5%

Required:

• Calculate taxable income (loss) and the related current tax liability for the current year. You must show all workings and present your calculation in an appropriate format