Peta Driving School Pty Ltd, a base rate entity, prepared the following Income Statement for 2023/24...
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Peta Driving School Pty Ltd, a base rate entity, prepared the following Income Statement for 2023/24 INCOME Gross fees $952,000 Fully Frank Dividend - note 3 $3,500 Unfranked Dividend $2,000 $957,500 EXPENSES Fines & Penalties $4,000 Depreciation - note 1 $77,000 Other Deductible expenditure $489,000 $570,000 NET PROFIT $387,500 Note 1 Note 2 The deduction for decline in value using tax rates was $111,000. The company commenced business in 2017 as a limousine service. On 30 August 2020, all the company's shares were sold to the Sullivan family. On 18 October 2021, the company ceased its limousine service and began operating as a driving instructor service. The company had incurred the following tax losses: $40,000 2020/21 2021/22 $50,000 2022/23 $15,000 Note 3 Franking credit was $1,167. REQUIRED: Using the template provided: (a) Prepare a statement reconciling net profit with taxable income for the 2023/24 tax year. (b) Calculate tax payable for the 2023/24 tax year. Peta Driving School Pty Ltd, a base rate entity, prepared the following Income Statement for 2023/24 INCOME Gross fees $952,000 Fully Frank Dividend - note 3 $3,500 Unfranked Dividend $2,000 $957,500 EXPENSES Fines & Penalties $4,000 Depreciation - note 1 $77,000 Other Deductible expenditure $489,000 $570,000 NET PROFIT $387,500 Note 1 Note 2 The deduction for decline in value using tax rates was $111,000. The company commenced business in 2017 as a limousine service. On 30 August 2020, all the company's shares were sold to the Sullivan family. On 18 October 2021, the company ceased its limousine service and began operating as a driving instructor service. The company had incurred the following tax losses: $40,000 2020/21 2021/22 $50,000 2022/23 $15,000 Note 3 Franking credit was $1,167. REQUIRED: Using the template provided: (a) Prepare a statement reconciling net profit with taxable income for the 2023/24 tax year. (b) Calculate tax payable for the 2023/24 tax year.
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a Reconciliation of Net Profit with Taxable Income Description Amount Aus Adjustment Taxable Income ... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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