Question A Time Travellers Pty Ltd was incorporated on 1 July 2019 (costs of incorporation were $2,500 ) and conducted a travel agency business which incurred tax losses of $45,000 and $11,000 in the years ended 30 June 2020 and 30 June 2021 respectively. On 1 September 2021 the company purchased a hotel and discontinued the travel agency business. Current year trading information: Income GrossrevenuefromhoteloperationsProceedsfromthesaleofshareson22August20211,200,000325,000 The shares had been acquired in a public float on 15 July 2016 for $9,860. Franked dividend received 3 November 2021 4,100 Franking credits attached $1,757 Partly franked dividend received 8 March 2022 8,000 Franking credits attached $2,743 Expenses PurchasesofconsumablesusedinthehotelSalariesandwages(includingDirectorssalariesof$60,000)InterestonloanLegalexpensesincurred:700,000450,00055,125 Legal expenses incurred: - in respect of the lease of the hotel 4,000 - for action to recover bad debts 1,0505,050 Other allowable expenses and depreciation 13,000 Purchase of raffle tickets 150 Fringe benefits tax 10,327 Additional information 1. The shareholders of Time Travellers Pty. Ltd. and their shareholdings were: 2. Voting and dividend rights are held in direct proportion to shareholdings. 3. The Commissioner of Taxation considers that $20,000 of the Directors' salaries is unreasonable. 4. A dividend of $6,200 franked to 50% was paid on 5 November 2021 , and a dividend of $5,400 which was franked to 100% was paid on 10 March 2022. 5. The company obtained a 10-year loan in the amount of $450,000 on 1 September 2020 to purchase the hotel buildings and the goodwill. The costs associated with obtaining the loan were $2,300 in stamp duty and $350 in registration expenses. The interest on the loan was charged at 7% per annum which equated to $2,625 per month. Interest was payable in arrears on the first of each month. The company paid the interest monthly until 1 April 2022 when the company prepaid the interest for 12 months. Required: 1. Calculate the taxable income and net primary tax payable for the year ended 30 June 2022. The company qualifies as a BRE 2. Assuming a nil opening balance at 1 July 2021 prepare the franking account for the current year, and calculate any tax and/or penalty