Trash Converters Limited, a small business entity, has prepared an income statement for2017/18:

	$	$
GROSSPROFIT		1,624,000
Add: OTHERINCOME
UnfrankedDividend	2,300
Fully Franked Dividends (company tax rate 30%)	7,700
Net Dividends from Spain - note1	32,000
Gain on Sale of Shares - note2	2,000	44,000
TOTAL OPERATING INCOME		1,668,000
EXPENSES
Depreciation - note 3	34,000
Fringe BenefitsTax	48,000
Payroll Tax	46,900
Superannuation - note4	75,000
PAYG Instalments Paid - note5	92,000
Other DeductibleExpenditure	965,000	1,260,900
NETPROFIT		407,100

Note 1	The dividends from Spain have had $8,000 of tax withheld.
Note 2	Shares sold during the year were acquired in 1984 as an investment.
Note 3	Decline in value deduction is calculated as $28,000.
Note 4	Superannuation includes an amount of $30,000 paid to a director's spouse. This $30,000 amount is deemed to be excessive.
Note 5	All of the PAYG tax instalments relate to the current year.

Required:

1. Complete the table reconciling net profit with taxable income for the 2017/18 taxyear.

1. Calculate net tax payable by the company for the 2017/18 taxyear.  

Answer rating: 100% (QA)

To reconcile the net profit with taxable income for the 201718 tax year and calculate the net tax pa... View the full answer