Clairmont Ply Ltd is a company that had the following transactions during the year.

a. Income
i. Sales of Goods and Services $450,000
Il. Govemment Rebate for apprenticeship $5,000
mi. Interest income $25,000
iv. Fully franked dividend of $18,000
v. Windfall gain relating to a television pris
• awarded because an employee nominated the company in a show $10,000.

b. Expenses
1. Purchases $200,000 - no stock on hand as at 30 June 2022
it. Legal fees $20,000 - customer complaint relating to the product purchased.
mi. Wages $120,000

c. PAYG instalments paid.
1. July 2021 is $2,000 and is related to the 2021 year. it. October 2021 $1,500
ill. January 2022 $1,500
iv. April 2022 $1,500
v. July 2022 $1,500

d. Dividends paid.
1. October 2021 fully franked dividend of $2,000
IL. January 2022 50% franked dividend of $3,000
li. Opening franking account balance as of 1 July 2021 was $5,000

REQUIRED
1. Calculate tax payable by the company for the year ending June 2022. Justify your calculations using legislation, case law, and rulings where necessary. (10 marks)
2. Prepare the company's franking account and determine the company's franking account balance as of 30 June 2022. Justify your calculations using legislation, case law, and ruling:
where necessary.

Answer rating: 100% (QA)

To calculate the tax payable by Clairmont Ply Ltd for the year ending June 2022 and prepare the comp... View the full answer