QUESTION 3

Gecko Pty Ltd (Gecko) is a private company. The following transactions took place for the year ended 30 June 2020:

• Gecko paid income tax of $60,000 for the year ended 30 June 2019.
• Gecko had a dispute with the Commissioner and the Commissioner refunded income tax of $20,000 on 20 May 2020.
• Gecko paid its GST of $5,000 for the March quarter on 10 April 2020.
• Gecko paid a partially franked dividend at 70% with a distribution of $8,000.

You can assume that Gecko is not a base rate entity.

REQUIRED

Explain the impact of each of the above transactions on Geckos franking account.

Make sure you explain your answer.