Question 2 The following information is provided by South Pty Ltd (South), a resident private company with an annual turnover of $20 million in the 2016/17 tax year. 2016 01.07.16 28.07.16 30.09.16 28.10.16 Opening balance brought forward. Franking surplus Payment of the last PAYG instalment for the 2015/16 tax year Receipt of an unfranked dividend from a resident public company Payment of the first PAYG instalment for the 2016/17 tax year 1 029 1 000 2 000 2 100 2017 28.02.17 15.03.17 28.04.17 28.04.17 30.05.17 30.06.17 Payment of the second PAYG instalment for the 2016/17 tax year Final payment of company tax for the 2015/16 tax year Payment of the third PAYG instalment for the 2016/17 tax year Payment of fringe benefits tax Payment of a fully franked dividend Receipt of a dividend from an Australian public company franked to 75% 2 000 6 550 2 250 4 200 37 300 3 000 Prepare the franking account of South for the 2016/17 franking year and advise the company of its liability for franking deficit tax