Part B (8 Marks) Fun Galore Pty Ltd (FG) is an Australian resident company for income...

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Part B (8 Marks) Fun Galore Pty Ltd (FG) is an Australian resident company for income tax purposes. The shares in FG are held by Beth Galore (50%) and her husband, Tran Galore (50%). This has been the ownership of the shares since incorporation of the company. Beth and Tran are Australian residents for tax purposes. FG's main activity is running fun and games parlors (arcades) in major shopping centres. FG does however own some shares in listed companies. For the 2021-22 income year, FG has entered into/been involved in the following transactions: 1. received a distribution of $12,080 (80% franked) from PBS Ltd on 20 September 2021. 2. paid an interim dividend of $24,600 on 18 October 2021 to shareholders. The distribution was 75% franked. 3. paid a company tax instalment of $60,000 under the PAYG instalment system on 28 February 2022. 4. received a refund of income tax of $22,800 in respect to the lodgment of FG's tax return for the 2020-21 income year. The refund was received on 26 April 2022. 5. payment of fringe benefits tax on 21 May 2022 of $7,000 in respect to the 2021-22 FBTyear. 6. payment of a final dividend of $40,000 to the shareholders, Beth and Tran on 15 June 2022. On the advice of FG's tax accountant, this distribution was 75% franked. FG had a tax loss of $31,000 for the 2020-21 income year. This is the only time it has had a tax loss and this tax loss was not used under s 160-15 of the ITAA 1997. FG's franking account on 30 June 2021 had a deficit balance of $12,600. Debits to the franking account for this year were $98,600, and credits for the year were $76,000. Aside from the above transactions, FG's assessable income from its activities came to $880,000 and its deductions came to $868,016 from the 2021-22 year. Finally, FG had a net capital loss of $12,000 for the 2018-19 income year (from the sale of some shares). Required: 1. What is the balance of FG's franking account on 30 June 2022? Explain. Show calculations. 2. Calculate F G's income tax liability (if any) for the 2021-22 income year. Explain yourcalculations by reference to tax legislation and tax principles. 3. Advise FG of any tax offsets available to it. Explain your advice. Part B (8 Marks) Fun Galore Pty Ltd (FG) is an Australian resident company for income tax purposes. The shares in FG are held by Beth Galore (50%) and her husband, Tran Galore (50%). This has been the ownership of the shares since incorporation of the company. Beth and Tran are Australian residents for tax purposes. FG's main activity is running fun and games parlors (arcades) in major shopping centres. FG does however own some shares in listed companies. For the 2021-22 income year, FG has entered into/been involved in the following transactions: 1. received a distribution of $12,080 (80% franked) from PBS Ltd on 20 September 2021. 2. paid an interim dividend of $24,600 on 18 October 2021 to shareholders. The distribution was 75% franked. 3. paid a company tax instalment of $60,000 under the PAYG instalment system on 28 February 2022. 4. received a refund of income tax of $22,800 in respect to the lodgment of FG's tax return for the 2020-21 income year. The refund was received on 26 April 2022. 5. payment of fringe benefits tax on 21 May 2022 of $7,000 in respect to the 2021-22 FBTyear. 6. payment of a final dividend of $40,000 to the shareholders, Beth and Tran on 15 June 2022. On the advice of FG's tax accountant, this distribution was 75% franked. FG had a tax loss of $31,000 for the 2020-21 income year. This is the only time it has had a tax loss and this tax loss was not used under s 160-15 of the ITAA 1997. FG's franking account on 30 June 2021 had a deficit balance of $12,600. Debits to the franking account for this year were $98,600, and credits for the year were $76,000. Aside from the above transactions, FG's assessable income from its activities came to $880,000 and its deductions came to $868,016 from the 2021-22 year. Finally, FG had a net capital loss of $12,000 for the 2018-19 income year (from the sale of some shares). Required: 1. What is the balance of FG's franking account on 30 June 2022? Explain. Show calculations. 2. Calculate F G's income tax liability (if any) for the 2021-22 income year. Explain yourcalculations by reference to tax legislation and tax principles. 3. Advise FG of any tax offsets available to it. Explain your advice.

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Balance of FGs franking account on 30 June 2022 To calculate the balance of FGs franking account we need to consider the credits and debits to the fra... View the full answer