Question
GST / Corporate Tax (10 marks) a) Tuapekong runs a business selling vending machines. During the quarter ended 30 June 2020, he has had the
GST / Corporate Tax (10 marks)
a) Tuapekong runs a business selling vending machines. During the quarter ended 30 June 2020, he has had the following transactions:-
$
Sale of vending machines 110,000
Bank interest received 95
Employee reimbursement for use of company car 550
Purchase of vending machines 75,000
Bank fees 250
Required
Calculate Tuapekongs GST liability for the quarter. Assume that he is GST registered and all figures are GST inclusive, where applicable. 5 marks
b) The following information is provided by Happy Feet Pty Ltd, a resident company. It is a base rate entity for the income year and thus 27.5% company tax rate applies.
31/07/19 Franking deficit tax paid 340
16/12/19 Company tax instalment paid 12,200
17/12/19 Received a 60% franked dividend from a resident public company. The dividend received was from a large ASX listed company that is NOT a small business taxpayer company. 5,000
1/06/20 Paid fully franked dividends 8,000
Required
Prepare Happy Feets Franking Account for the year ended 30 June 2020 assuming the opening debit balance was $340. 5 marks
Total 10 marks
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