Applied Education ** Please use relevant rates and legislation for the 2022/23 financial year. You may be required to complete independent research and/or refer to the ATO website to complete this assessment. TASK 1 Makeit Pty Ltd is a local manufactures. The company wishes to use all available small business concessions to minimise taxable income. Makeit Pty Ltd has prepared the following Profit & Loss Statement for the 2023 financial year: Gross Sales Less Cost of Goods Sold Opening Stock Purchases and Manufacturing Costs Closing Stock Gross Profit Add Other Income Foreign Income: Rent Italy {Net) Interest Income EXPENSES Gross Wages Superannuation Interest on Loan to purchase rental property in Italy Provisions for Customer Warranty Claims Note 2 Truck Expenses Accounting Depreciation Note 3 Share of Loss from Partnership with Al Insulation Pty Ltd Tax Related Expenditure Note 4 Other Deductible Expenses NET PROFIT BEFORE INCOME TAX Note 1 33,000 750,000 783,000 -300,000 11,500 2,000 650,000 92,000 3,500 30,000 31,000 60,000 9,500 24,000 400,000 s 1,900,000 483,000 1,417,000 13,500 1,430,500 1,300,000 130,500 Makeit Pty Ltd owns a property in Italy. The $11,500 rent received from this investment is net of $3,800 tax withheld by the Italian government. FNSACCE01 Final Assessment v3.5 8 of 15 Applied Education Note 2 The amount of warranty expenses paid to customers during the 2023 income year was $11,000, Note 3 Plant & Equipment Opening balance - Nil Purchase of New Machine on 1 December 2022 $161,525 - Life 4 years Note 4 Tax related expenditure is comprised of the following: Payroll Tax $ 6,000 Tax Agent Fees $ 6,000 ATO Penalties $ 5,000 ATO General Interest Charge $ 7,000 Note 5 $50,000 of PAYG tax instalments were paid for the 2022/23 income year. REQUIRED: Using the template provided: 1. Prepare a statement reconciling net profit with taxable income 2. Calculate the net tax payable by the company for the year, clearly showing all your workings 3. Inaddition to the ATQ, as a Tax Agent who would you consult if you required advice and guidance to determine any income tax related issues? FNSACCE01 Final Assessment v3.5 9 of 15