Question: Question 1 (5 marks) Drone Drop Pty Ltd had a Benchmark Franking Percentage of 80% for the year ended 30 June 2020. On 1 October

Question 1 (5 marks)

Drone Drop Pty Ltd had a Benchmark Franking Percentage of 80% for the year ended 30 June 2020.

  • On 1 October 2019 it paid a dividend of $90,000 franked to 65% to its shareholders.
  • Then on 1 February 2020 it paid a dividend of $250,000 franked to 90% to its shareholders.

Required: What are the consequences of these two events for Drone Drop Pty Ltd for the year ended 30 June 2020?

(Only advise on the consequences for Drone Drop Pty Ltd NOT its shareholders)

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