Grove Body Works Pty Ltd (GBW) is an Australian resident company for tax purposes. The shares in GBW are held by Jean Grove (60%) and John Grove (40% ). Indeed, this has been the ownership of the shares since incorporation of the company. Both Jean and John are Australian residents for tax purposes. GBW's main activity is running a gymnasium. However, the company also owns shares in other companies, and it also holds some non-share investments. For the 2021-22 income year, GBW has entered into/been involved in the following transactions: 1. received a distribution of $23,526 (85% franked) from HFB Ltd on 20 July 2021. HFB Ltd is an Australian resident company; 2. paid a company tax instalment of $66,000 under the Pay-As-You-Go (PAYG) instalment system on 29 July 2021; 3. paid an interim dividend of $93,600 on 13 October 2021 to Jean and John Grove. The distribution was 80% franked; 4. paid a company tax instalment of $62,000 under the PAYG instalment system on 4 November 2021; 5. paid a company tax instalment of $52,000 under the PAYG instalment system on 28. February 2022; 6. received a refund of income tax of $67,800 in respect to the lodgement of GBW's tax return for the 2020-21 income year. The refund was received on 15 March 2022; 7. paid a company tax instalment of $23,787 under the PAYG instalment system on 29 April 2021; 8. payment of fringe benefits tax on 21 May 2022 of $3,700 in respect to the 2020-21 FBT year; and 9. payment of a final dividend of $350,000 to the shareholders, Jean and John Grove on 20 May 2022. On the advice of GBW's tax accountant, this distribution was 74% franked. GBW's franking account on 30 June 2021 had a deficit balance of $33,348. Debits for the year were $326,011, and credits for the year were $292,661. GBW also holds a 75% interest in an investment partnership with General Property Holdings Pty Ltd (GPH). GPH is an unrelated company. All the partnership's income is from three rental properties. Due to difficulties with tenants during the income year, the partnership made a "tax loss" of $36,000 for the 2021-22 income year. GBW has not yet contributed all its share of the money to cover the loss. The partnership made its distribution for the 2020-21 financial year on 30 September 2021. GBW received $48,000 on this date. Aside from the above transactions, the only other transactions GBW entered arose from its gymnasium business and interest on bank account deposits. GBW's assessable income from the gymnasium business was $700,000 for the 2021-22 income year. Aside from the transactions listed above, GBW's deductions from the business for the year were $665,866. During the 2021- 22 income year, GBW received interest (on its bank account principal) of $2,300 on 30 September 2021 and $3,470 on 30 March 2022. GBW had a revenue loss under s 36-10 of the ITAA 1997 of $32,000 from the 2020-21 income year. Finally, GBW also has a net capital loss of $14,000 for the 2014-15 income year (from the sale of some shares). Required 1. Advise GBW on the implications arising from its franking account for the 2020-21 year. Fully explain by reference to tax legislation and tax principles. 2. Construct GBW's franking account for the 2021-22 year. Provide a brief explanation for your entries to the franking account. 3. Advise GBW of any consequences arising from its franking account for the 2021-22 year. Fully explain your advice by reference to tax legislation and tax principles. 4. Calculate GBW's tax liability for the income year ending 30 June 2022. Explain your calculations by reference to tax legislation and tax principles.