Calculate the franking account and tax payable by Otago Pty Ltd.
Frank is a director of Otago Pty Ltd (Otago), an Australian resident private company, with acorporate tax rate for imputation purposes for the 2020/21 income year of 30%.

Frank provided you with the following information regarding the company's franking account:
1 July 2021: Opening balance $500 credit.29 July 2021: Paid 2020 tax year fully franked final dividend $7,000
28 February 2021: Paid 2021 tax year 60% franked interim dividend $9,00030 April 2021: Received fully franked dividend from Australian company $4,500
28 June 2021: PAYG installment paid relating 2020/21 tax year totaled $1,20030 June 2021: Declared a fully franked dividend of $10,000

Otago had a taxable income of $16,000 for 2020/21.

Required
1) Prepare Otago Pty Ltd.'s franking account for the 2020/21 tax year and explain any consequences arising from the franking account balance at 30 June 2021.
2) Calculate net tax payable (refundable) for the company.