Zany Funds Management Pty Ltd is an investment company. There is a carried forward tax loss of
Question:
Zany Funds Management Pty Ltd is an investment company. There is a carried forward tax loss of $80,000 from the 2018 financial year. The company has prepared the following Profit & Loss Statement for the 2019 financial year:
Income Distribution from Unit Trusts – Note 1 |
$ 1,000 |
|
Bank Interest | 3,500 |
|
Unfranked Dividends | 6,000 |
|
Fully Franked Dividends – Note 1 | 7,000 | 17,500 |
Expenses |
|
|
Accounting fees | 7,000 |
|
Capital Loss on sale of shares | 10,000 |
|
Ongoing financial advice | 19,000 |
|
Other deductible expenses | 40,000 | 76,000 |
NET LOSS |
| (58,500) |
NOTE 1
The income distribution from the unit trust included $300 of franking credits. Fully Franked Dividends represents the amount received from non SBE entities.
NOTE 2
One PAYG tax instalment was paid on 28 October 2018 of $11,000 (this related to the 2018/19 tax year)
REQUIRED:
- Prepare a statement reconciling net profit with taxable income
- Calculate net tax payable/refundable
- Calculate ALL losses carried forward by the company.
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren