Frank is a director of Otago Pty Ltd (Otago), an Australian resident private company, with a corporate tax rate for imputation purposes for the 2020/21 income year of 30%.

Frank provided you with the following information regarding the companys franking account:

1 July 2020: Opening balance $500 credit.

29 July 2020: Paid 2020 tax year fully franked final dividend $7,000

28 February 2021: Paid 2021 tax year 60% franked interim dividend $9,000

30 April 2021: Received fully franked dividend from Australian company $4,500

28 June 2021: PAYG instalment paid relating 2020/21 tax year totalled $1,200

30 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 Ltds 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.