Johnnies Pty Ltd (Invest), an Australian base rate investment-only company, provides you with the following information for the year ending 30 June 2020:

On 1 July 2019 Johnnies had a balance of $400,000 Cr in its franking account.

On 3 September Johnnies received a $255,000 distribution from a UK subsidiary company..

On 4 October Johnnies received a Diverted Profits Tax refund of $168,500

On 7 November, Johnnies paid $900,000 tax in relation to a previous tax dispute

On 11 December, Johnnies paid a fully franked distribution of $710,500 to their shareholders

On 18 February, Johnnies received a 50% partially franked dividend of $392,000 from Jepson Ltd, a public listed company.

On 29 March, Johnnies received $345,000 income tax refund. On 11 April 2020, Johnnies paid a $435,000 60% franked distribution to its shareholders

On 4 May, Johnnies paid belatedly $175,500 - $90,000 for its 1st PAYG instalment owing and $85,500 for its 2nd PAYG instalment due, for 2020 financial year.

REQUIRED Support your answers and calculations with the applicable legislation in regard to both parts of the question:

PART 1

Prepare Johnnies's franking account for the year ending 30 June 2020. Hint use this table to to answer

Date Credit Debit Balance $

PART 2

Calculate the amount that Johnnies Pty Ltd could potentially distribute to its shareholders in a new distribution by the end of the current income year without incurring Franking Deficit Tax. (Include formula).