Clarke Pty Ltd has an operating profit of $500 000. There is a franking surplus of $85 000 on 1 July 2019. PAYG installments were paid 21 days after the end of the quarter. PAYG payments were as follows – June qtr. 2019 65,000; Sept qtr. 2019 $60,000; Dec qtr. 2019 $70,000; March qtr. 2020 $60,000; June qtr. 2020 $70,000. Clarke Pty Ltd also paid their Annual Tax Instalment for the 2018/2019 tax year of $10,000 on 15 Oct 2019. The following events are also from their financial records.

02.03.2020	Received a fully franked distribution from a resident public company	$70,000
01.05.2020	Payment of distribution to its shareholders - 100% franked	$500,000
15.06.2020	Received a distribution from a resident public company - 80% franked	$20,000

a. Prepare the company’s franking account for the 2019/2020 tax year based on the information provided above. You may want to use the following format.

Date	Item	Distribution	Tax credit	Total

b. Compute the tax payable by Johnson Pty Ltd for the year ended 30 June 2020.

Answer rating: 100% (QA)

a Date Item Balance Forward Jun 2019 Annual Tax 0 Pa... View the full answer