QUESTION 2 FRANKING ACCOUNT 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 12 marks Prepare Johnniess franking account for the year ending 30 June 2020. Hint use this table to prepare your answer Date Credit Debit Balance $ PART 2 3 marks 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).