Question

Melbourne Awesome Ltd supplies a wide range of folding bicycles. Melbourne Awesome Ltd derives Australian sourced income for the current tax year comprising net income from trading of $80,000, franked distribution from public companies amounting to $28,000, (carrying an imputation credit of $12,000), unranked distributions from resident private companies amounting to $25,000 and rental income of $5,500. Melbourne Awesome Ltd also have total deductions (Business Expenses) totaling $55,000.

Answer 1

Answer: $21450

Step-by-step explanation:

Here's the remainder of the question:

Required: Calculate the net tax payable by All Sports Ltd for the year ended 30 June 2019. (Assume company tax rate is 30%)

The following can be gotten from the question:

Rental income = $5500

Add: Net income from trading = $80,000

Less: Business expenses = $55,000

Add: Franked distribution = $28,000

Less: imputation credit = $12,000

Add: unfranked distribution = $25,000

Total income = $71,500

Net tax payable will be:

= 30% × $71500

= 30/100 × $71500

= 0.3 × $71500

= $21450