1.Francesca is an Australian resident. She receives a $700 fully franked dividend from Rio Tinto. She decides to put it in a Dividend Reinvestment Plan (DRP), rather than receiving the cash amount. Assume the company tax rate for Rio Tinto is 30%.

How much will Francesca include in her assessable income in relation to the dividend received?

Select one:

$700

$210

Nothing as she has not received the cash

$1,000

2.

Jeff is a resident of Australia for tax purposes for the full year. He received the following dividends:

A cash dividend of $700 from NAB, which was 100% franked

A dividend of $1,000 from BHP, which was 50% franked and reinvested though a dividend reinvestment plan

An unfranked dividend of $200 from CSL.

In relation to these transactions, how much will Jeff include in his assessable income?

Select one:

$1,400

$2,628

$2,414

$1,700

3.

Albert is an Australian resident for tax purposes. He currently works as a waiter in a fancy French restaurant in Sydney. His total salary for the income year ended 30 June 2020 is $80,000, from which his employer withheld Pay As You Go (PAYG) income tax instalments totalling $18,617.

Albert also received tips from customers at the restaurant totalling $5,000 for the income year ended 30 June 2020.

Finally, Albert has a term deposit which has generated interest received of $500 for the year ended 30 June 2020.

What are Pay As You Go (PAYG) income tax instalments paid by an employer?

Select one:

Tax credits

Tax liabilities

Tax deductions

None of the above

4.

Alex is an Australian resident for tax purposes. She currently works as a financial advisor in Melbourne. Her total salary for the income year ended 30 June 2020 is $120,000, from which her employer withheld Pay As You Go (PAYG) income tax instalments totalling $34,217.00.

Alex also has a share portfolio which has generated franked dividends of $7,000 and franking credits of $3,000. Alex took out a loan to purchase the shares and she incurred interest expenses of $5,000.

What is Alexs taxable income?

Select one:

$122,000

$127,000

$130,000

$125,000

5.

Albert is an Australian resident for tax purposes. He currently works as a waiter in a fancy French restaurant in Sydney. His total salary for the income year ended 30 June 2020 is $80,000, from which his employer withheld Pay As You Go (PAYG) income tax instalments totalling $18,617.

Albert also received tips from customers at the restaurant totalling $5,000 for the income year ended 30 June 2020.

Finally, Albert has a term deposit which has generated interest received of $500 for the year ended 30 June 2020.

Alberts assessable income is:

Select one:

$85,500

$80,500

$85,000

$66,883

6.

Every taxpaying entity, whether in business or not, needs to pay tax on every amount of money they receive in a financial year

Select one:

Yes

No

7.

Which of the following is an example of trading stock?

Select one:

Airplanes on hand held by Qantas.

Machinery and equipment for use by the operator of the warehouse.

Land held by a land developer.

Motor vehicle held for private sale.