Alpha Ltd (Alpha) is an Australian resident public company that sells various electronic equipment. The following information relates to the year ended 30 June 2022.

Details of Alphas income during the year is as follows:

Sales: $20,000,000

Sales: $20,000,000. A fully franked dividend of $200,000 was received on 1 October 2021 from Beta Ltd (an Australian resident public company for tax purposes. You can assume that Betas tax rate for imputation purposes is 30%.)

A dividend of $90,000 received on 30 March 2022 from Gamma Ltd (an Australian resident public company for tax purposes), franked to 80%. (You can assume that Gammas tax rate for imputation purposes is 25%).

Alpha holds 10% of the units in the Zeta Unit Trust. This entitles them to receive 10% of the income of the trust each year. For the year ended 30 June 2022, the income of the trust was $1,800,000. The net income of the trust was $1,900,000. Alpha Ltd had the following expenses during the year: $3,200,000: staff salaries and superannuation. In addition, the company made a provision for annual leave of $120,000.

$1,500,000: rental of premises

$8,000,000: purchases of trading stock. Trading stock was valued at $900,000 (cost price) on 30 June 2021. Closing stock at 30 June 2022 (at cost) was $1,150,000. Alpha has always used the cost method of valuing stock for tax purposes and has no intention of changing this practice.

$1,300,000: other expenses (you can assume these are all deductible under ITAA97 s 8-1). As at 1 July 2021 the balance in Alphas franking account was $350,000. On 28 July 2021, Alpha makes their final PAYG instalment for the 2020-21 year of $400,000. On 1 October 2021, Alpha makes a final tax payment of $480,000 in in relation to the 2020-21 year.

For each quarter in the 2021-22 year (i.e. quarters ending 30 September 2021; 31 December 2021; 31 March 2022; 30 June 2022); Alpha makes a PAYG instalment of $600,000. (You can assume each of these payments is made on the legislated due date). Any final payment of tax (or any refund due) for the 2021-22 year is paid/refunded on 1 October 2022.

Prepare a franking account for Alpha and calculate the franking account balance as at 30 June 2022 and 1 October 2022.