Client C Lazarus Morrison (background information) Lazarus Morrison is a director of Fire Ball Pty Ltd, an Australian resident private company with a corporate tax rate for imputation purposes of 30% for the 2021/22 income year. Fire Ball Pty Ltd sells firecrackers and account for taxable income on an accrual basis. Lazarus has provided the following information regarding the completion of the companys franking account for the year ended 30 June 2022. (Ignore the small business concessions) 1 July 2021, the balance in the franking account was $13,000. 24/8/2021 PAYG instalment paid for June quarter 2021 $1,860 30/8/2021, a dividend of $14,600 received from Australian Bank Ltd (an Australian resident public company for tax purposes) franked to 60%. 25/11/2021 PAYG instalment paid for September quarter 2021 $1,450 12/12/2021 Fully franked Dividend paid $32,000 28/2/2022, a fully unfranked dividend of $15,000 from Lowes Ltd (an Australian resident public company for tax purposes). 28/2/2022 PAYG instalment paid for December quarter 2021 $1,450 25/5/2022 PAYG instalment paid for March quarter 2022 $1,450 June quarter 2022 PAYG instalment amounted to $1,450. The payment will be paid on 25 August 2022. Further information Fire Ball Pty Ltd was incorporated in 2016, ran a business of assembling, repairing and selling bicycles that were manufactured in Australia. Fire Ball had four equal shareholders who each held 100 of the 400 shares in the company. The business was successful until 2018/19 when there was a downturn in sales. As a result, there was a tax loss of $15,000 for 2018/19. On 1 July 2019, three shareholders sold their shares to Neil Solski and since then, Lazarus Morrison and Neil Solski were two shareholders of the company. The business expanded into the sale of firecrackers and 17 December 2019, the company stopped bicycle operations and fully focused on sale of firecrackers. The company made another tax losses of $7,000 and $5,000 for 2019/20 and 2020/21 respectively. Then Fire Ball Pty Ltd derived a profit in the 2021/22 income year and wants to carry forward the tax losses from 2020 and 2021 as a deduction to reduce its 2022 taxable income of $47,000. Based on the background information for client C (outlined below) prepare an 8 minute client presentation explaining your tax advice and recommendations. Your Presentation should be supported by a maximum of 10 PowerPoint slides (including a title slide and a slide with reference list) as a visual aid, including calculations, to explain your advice and recommendations to Client C. Your presentation needs to address the following points: Construct the companys franking account for the 2021/22 financial year, and calculate the franking account balance as at 30 June 2022. Fire Ball Pty Ltd are wishing to pay a final fully franked dividend of $30,000 on 30 June 2022. However, Lazarus is concerned about the franking account going into deficit. Determine the maximum frankable distribution percentage on $30,000 dividend without going into deficit and the tax consequences of the dividend payment. Fire Ball Pty Ltd decided to pay $30,000 fully franked dividend instead of partially franked dividend. Advise the tax consequences of $30,000 fully franked dividend payment on 30 June 2022. Advise the final tax payable or refundable for Fire Ball Pty Ltd for 2021/22 including whether or not the company can claim all losses. And advise of any tax consequences arising from the franking account on an assumption that $30,000 fully franked dividend was paid on 30 June 2022.