During the year ended 30 June 2020, Fedlin Pty Limited (an Australian resident private company) had the
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Question:
During the year ended 30 June 2020, Fedlin Pty Limited (an Australian resident private company) had the following events that might be relevant to its franking account:
1-Jul-2020 | Opening balance of franking account | $65,000 |
15-Jul-2020 | Payment of dividend franked to 65% | $380,000 |
3-Aug-2020 | Payment of payroll tax | $170,000 |
28-Aug-2020 | Payment of June 19 PAYG instalment | $27,000 |
31-Jan-2020 | Refund of income tax | $160,000 |
22-Feb-2020 | Receipt of dividend from company outside the group, franked to 80% | $280,000 |
2-Mar-2020 | Payment of dividend franked to 40% | $420,000 |
31-Mar-20 | Payment of income tax | $54,000 |
13-Apr-20 | Refund of land tax | $149,000 |
6-May-20 | Payment of fringe benefits tax | $6,000 |
30-Jun-20 | Payment of dividend franked to 70% | $380,000 |
Required:
a) Create the franking account with explanations.
b) Explain any further taxes for which the Company might be liable.
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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