Question 5 You must answer both A and B Juice Pty Ltd is a resident company. It has two resident sharehold- ers. One, Peter owns one A class share in the company and is on a marginal tax rate of 45% Assume the after-tax distributable profit of Juice Pty Ltd is calcu- lated as follows: For the past four years, Sapo has also made leather sandals for sale at his local market He has not yet made a profit from selling the sandals. In the current financial year Sapo has sold $15,000 worth of sandals but incurred expenses totalling $17.500. Sapo wishes to offset the $2,500 loss against his income from Health Well Required B: (10 marks) Advise Sapo whether he can offset the loss. In your response give reasons and refer to sections of legislation and cases, where relevant. Profit (including income) Income Tax @ 30% Franking credits After-tax income After-tax profit $200,000 $100,000 $ 30,000 $ 30,000 $ 70,000 $170,000 Click or tap here to enter text. Required A: (10 marks) Disregarding the Medicare levy, calculate the after-tax effects for Peter if he receives as a distribution a dividend of $85,000 franked to 50% In your response give reasons and refer to sections of legislation and cases, where relevant Click or tap here to enter text. . AND Sapo is both a doctor and a partner in Health Well medical prac- tice. He receives $100,000 income from the medical practice in the current financial year Type here to search O BI 9 - wl 9:43 PM 10/262020 E Question 5 You must answer both A and B Juice Pty Ltd is a resident company. It has two resident sharehold- ers. One, Peter owns one A class share in the company and is on a marginal tax rate of 45% Assume the after-tax distributable profit of Juice Pty Ltd is calcu- lated as follows: For the past four years, Sapo has also made leather sandals for sale at his local market He has not yet made a profit from selling the sandals. In the current financial year Sapo has sold $15,000 worth of sandals but incurred expenses totalling $17.500. Sapo wishes to offset the $2,500 loss against his income from Health Well Required B: (10 marks) Advise Sapo whether he can offset the loss. In your response give reasons and refer to sections of legislation and cases, where relevant. Profit (including income) Income Tax @ 30% Franking credits After-tax income After-tax profit $200,000 $100,000 $ 30,000 $ 30,000 $ 70,000 $170,000 Click or tap here to enter text. Required A: (10 marks) Disregarding the Medicare levy, calculate the after-tax effects for Peter if he receives as a distribution a dividend of $85,000 franked to 50% In your response give reasons and refer to sections of legislation and cases, where relevant Click or tap here to enter text. . AND Sapo is both a doctor and a partner in Health Well medical prac- tice. He receives $100,000 income from the medical practice in the current financial year Type here to search O BI 9 - wl 9:43 PM 10/262020 E