Bread Basket Pty Ltd was equally owned by Daley Bread and Whyte Bread, two brothers. On $1$ July CY the brothers had bought out their two sisters who had owned the other $50\%$ of the company.

The company operated $3$ bakeries which sold bread and pastries. In addition to sales over the counter the bakeries ran accounts for a number of restaurants. Accounts were sent out after the end of each month and were usually paid within a fortnight.

The company had a net profit for the year of $$250,000$ after the following income and expenses were taken into account:

Income

Cash received

$930,000$

This included $$22,000$ which was outstanding from the previous year. Outstanding accounts for the current year were $$35,000.$

Dividends received:

$25$ August CY

National Bread Delivery Pty Ltd

$20,000$

Franking credits attached $-$$$5,000$

$15$ April CY

Flour Manufacturers Pty Ltd

$15,000$

Franking credits attached $-$$$6,429$

Expenses

Accounting fees

Bank fees

Donations to Red Cross and Amnesty Australia

$32,000$

Interest. Interest on business loans totalled $$1,500$ per month

$4,900$

and were paid monthly until $1$ March CY when $6$ months

$15,000$

interest was prepaid.

Legal expenses:

Retainer

$21,000$

Lease of factory premises

$5,000$

Borrowing expenses for $6$ year loan taken out on $30$ November

$500$

Borrowing expenses for $6$ year loan taken out on $30$ November CY$.$ Interest on this loan was capitalized so there were no loan repayments in the current year for this loan.

Provision for annual leave and long service leave

$800$

$60,000$

Purchase of materials

$350,000$

Travelling expenses:

Daley Bread traveled to a Small Business Conference in Sydney. His wife traveled with him and attended some of the social functions organised by the conference organisers. Daley's costs were $70\%$ of the total expenses paid by the company. The remainder related to his wife.

Wages to staff

Superannuation for staff

$5,100$

$500,000$

$45,000$

Notes:

Actual leave taken by staff was $$93,000.$

Purchase of new office on $1$ June CY for $$340,000.$ The building had been constructed on $1$ April $2003$ at a cost of $$100,000.$

Write off of bad debt of $$2,800$ on $15$ June CY$.$ The debt arose from sales to a restaurant in the previous year. The restaurant had gone out of business and there was going to be no return to unsecured creditors.

The following PAYG $($Instalments$)$ or refunds received were paid or received during the year:

$\backslash$table$[[\backslash$table$[[28$ July CY$],[28$ October CY$],[30$ November CY$],[28$ February CY$],[28$ April CY$],[28$ July FY$]],\backslash$table$[[4^{th}$ instalment of PY tax$],[1^{st}$ instalment of CY tax$],[$refund of PY tax$],[2^{nd}$ instalment of CY tax$],[3^{rd}$ instalment of CY tax$],[4^{th}$ instalment of CY tax$]]]]$

The company paid two dividends during the year. The first totalled $$35,000$ and was franked to $100\%.$ It was paid on $1$ July CY$.$ The second dividend was paid on $1$ December CY$.$ The dividend totalled $$60,000$ and was franked to $30\%.$ The balance in the franking account at $30$ June PY was a debit of $$2,000$ which was paid on $28$ July CY$.$

Required:

Using the reconciliation method, calculate the taxable income and the net tax payable of the company for the year ended $30$ June CY assuming the company wished to mimimise it's taxable income but did not wish to use pooling for depreciation purposes and did not wish to use SBE elections. Treat them as a non BRE

Set out the franking account for the company for the current year including any franking additional tax or franking deficit tax which may be payable.