Required:

(a) The proposed investments are to be financed by retained earnings and external finance. Calculate the amount requried from each source.

(b) Calculate the amount credited to the franking account.

(c) If the dividends are fully franked, calculate the debit entry that would be made to the franking account.

(d) If there was no existing balance in the franking account calculate how much Franking Deficit Tax is payable.