QUESTION 2 - FRANKING ACCOUNT Jaxson Pty Ltd, an Australian base rate investment-only company, provides you with the following information for the year ending 30 June 2021: 1. On 1 July 2020 Jaxson had a balance of $300,000 in its franking account. 2. On 15 September 2020 Jaxson paid a fully franked distribution of $555,000 to their shareholders. 3. On 28 October 2020 Jaxson paid $250,000 income tax. 4. On 30 November 2020 Jaxson received a $350,000 distribution from a US company. 5. On 15 January 2021, Jaxson paid a $296,000 70% franked distribution to its shareholders 6. On 21 February 2021, Jaxson paid Diverted Profits Tax of $107,800 7. On 24 March 2021, Jaxson received a $60,000 tax refund in relation to a previous tax dispute. 8. On 28 April Jaxson paid $148,000 - $70,000 for its 1st PAYG instalment owing and $78,000 for its 2nd PAYG instalment due, for 2021 financial year. 9. On 28 May 2021, Jaxson received a 50% partially franked dividend of $490,000 from Jackson Ltd, a public listed company. REQUIRED Support your answers and calculations with the applicable legislation in regard to both parts of the question: PART 1 Based on the various transactions above, prepare Jaxson's franking account for the year ending 30 June 2021. (12 marks) (Hint : Take into consideration if the benchmark rule has been breached and subsequent impact) Use this table Date Debit Credit Balance $ 5 PART 2 Calculate the amount that Jaxson 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).