Question 1

Calculate Sandras taxable income in respect of 2020/21.

Sandra derives income from a range of investments and part time employment as a short order cook.

Amounts received related to investments during the tax year

Interest from cash management account	$ 613
Income distribution from unit trust	2,198
Fully franked dividends from shares in Very good credit Ltd	2,779
Dividend from Milson Ltd (franking credits of $578)	3,736
Unfranked dividend from Harris Ltd	284

Proceeds from loan used to purchase shares in Milson Ltd 25,000

Other information concerning investments

Sandra received 360 shares in Samson Ltd instead of a $1,897 fully franked dividend as part of a dividend reinvestment scheme;

Sandra also received 500 bonus shares of $2 in Samson Ltd as part of a bonus share issue made from reserves.

Outgoings related to investments

Purchase of shares in Milson Ltd (23 August 2020)	$ 29,344
Repayment of loan used to purchase shares in	12,000
Milson Ltd (interest charged on loan $2,755)
Interest on credit card used to pay tax liability	427
Investment journals - receipts kept	184
Other amounts received during tax year
Part-time wages (net of $2,848 PAYG withheld)	$ 19,383
Proceeds from sale of car (purchased 2018/19 for	12,690
$28,400}
Other outgoings during tax year
laundry of uniform - estimate	$ 74
Tax agents fee	135