Condor Limited is listed on the ASX and earns part of its income in Australia and part overseas, where it is required to pay tax. The Australian company tax rate is 30 percent. Condor Limited can provide dividend imputation to Australian shareholders from Australian tax paid. Assume the shareholder’s marginal tax rate is 37 percent, plus the Medicare levy of 2 percent. The investor receives a 70 percent partly franked dividend of $12 700.00. 

(a) Explain the dividend imputation process. 

(b) Why might a dividend be only partly franked? 

(c) Calculate the income tax payable by the investor.