Nick invests in several companies and received the following dividends during the current year:

Company	Dividend excluding franking credits ($)	Franking Credit ($)
Shelly Petroleum Ltd	10,400	5,200
Great Lobster Balls Of Fire Ltd	25,200

Based on the above facts and relevant tax laws, how should Nick treat the amounts received from these investments? (select the best answer)

	A	Only dividends totalling $15,600 should be recognised as statutory income and only franking credits totalling $5,200 should be recognised as a refundable tax credit.
	B	Dividends totalling $40,800 should be recognised as statutory income and franking credits totalling $5,200 should be recognised as a refundable tax credit.
	C	Dividends totalling $35,600 should be recognised as statutory income and franking credits totalling $5,200 should be recognised as a refundable tax credit.
	D	Dividends totalling $10,400 should be recognised as ordinary income and franking credits totalling $5,200 should be recognised as a refundable tax credit.

When returning from his lobster catching trip, Nick was fined $6,000 by Fisheries officers who inspected his catch and found 2 undersized lobsters in his possession.

Based on the above facts and relevant tax laws, Nick can claim this amount as a deduction because it relates to his business activities.

True

False