1. Evieowns shares and receives the following in the current income year:

Dividends from Company 1 - $3,400.Itis franked to 80%: Franking Credit of $1,168

Unfrankeddividendfrom Company 2 - $4,000

She also has interest of $25,000 from a loan made to a friend to renovate the friend's house.

How much mustEvieincludein her assessableincome?

$33,568

$32,400

$29,568

$8,568

2. An entity which receives more than 80% ofitsincomefromonesource must also satisfyat least 2of the following tests:

• the results test
• the employment test
• the business premises test
• theunusualcircumstances test

True

False

3.A Franking Accountdebitarises in which of the following cases?

The entity receives a tax refund and pays a franked distribution

The entity receives a franked dividend and pays a tax instalment

The entity pays Franking Deficits Tax

The entity pays a PAYG instalment