Question
The following question is based on the material in Chapter 4 of the textbook Advanced Income Tax Law: Q4. (Companies Reconciliation of Taxable Income Investment
The following question is based on the material in Chapter 4 of the textbook Advanced Income Tax Law:
Q4.
(Companies Reconciliation of Taxable Income Investment income)
Structured Pty. Ltd., a small business entity, has prepared the following income statement for 2017/18:
Income $
Unfranked Dividends 40,000
Fully Franked Dividends (related franking credit of $42,000) 98,000
Partly Franked Dividends (related franking credit $8,500) 38,000
Income distributed from partnership with Silent Pty. Ltd. (includes franking credits of $4,800) 46,000
Income distributed from Umbrella Trust (includes franking credits of $2,800) 19,000
241,000
Expenses
Deductible expenditure 18,000
Net Profit 223,000
Required:
Prepare a statement (format provided below) reconciling net profit with taxable income and calculate the tax payable (refundable) for the 2017/18 tax year.
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| $ | $ |
| Net Profit per Financial Report = |
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| Add (if any): (show details) |
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| Less (if any): (show details) |
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| = Taxable Income |
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| Tax on Taxable Income is: (show calculation details) |
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| Less (if any): (show details) |
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| = Tax Payable (Refundable) |
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