Question 7 - Franking, dividend distribution, benchmark rule

Blackstore Ltd made three frankable distributions during the 201W/201X franking period as follows:

01.09.2015$200,000 which is franked to 60%

01.12.2015$240,000 which is franked to 50%, and

01.03.2016$280,000 which is franked to 80%.

Required

Advise Blackstore Ltd of the tax consequences (if any) for breaching the benchmark franking rule during the 201W/201X franking period. Ensure you state the specific legislation, cases and tax rulings where appropriate to support your calculations and your answer.

[15 Marks]