Titan Holdings Ltd (a public company for tax law purposes) has an opening franking account surplus of
Question:
Titan Holdings Ltd (a public company for tax law purposes) has an opening franking account surplus of $40 000 at 1 July 2021.
During the 2022 income year the company entered into the following transactions.
1.
On 21 July 2021, the company paid its fourth and final PAYG instalment of $30 000 in respect of the 2021 income year.
2.
On 18 August 2021, the company paid a dividend of $98 000 franked to 70 per cent.
3.
On 25 September 2021, the company received a fully franked dividend from JB Hi-Fi Ltd of $12 000.
4.
On 12 October 2021, the company paid its first PAYG instalment for the 2022 income year of $25 000.
5.
On 9 January 2022, the company paid a franked dividend of $112 000, franked to 100 per cent.
6.
On 28 February 2022, the company paid its second PAYG instalment for the 2022 income year of $25 000.
7.
On 14 April 2022, the company received a fully franked dividend from Qantas Ltd of $9600.
8.
On 28 April 2022, the company paid its third quarter PAYG instalment for the 2022 income year of $25 000.
9.
On 4 May 2022, the company paid a franked dividend of $212 000, franked to 80 per cent.
Assume a company tax rate of 30 per cent. Round all calculations to the nearest whole dollar.
Required
Prepare a dividend franking account for Titan Holdings Ltd for the year ended 30 June 2022. Show all workings. Round all transactions to the nearest whole dollar.
Expert Answer:
To prepare the dividend franking account for Titan Holdings Ltd for the year ended 30 June 2022 well go through each transaction and calculate the fra... View the full answer
