Daisy, an Australian resident taxpayer, received a fully franked dividend of $2,800 from a small family company; Step Up Pty Ltd.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 83P
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Daisy, an Australian resident taxpayer,
received a fully franked dividend of $2,800
from a small family company; Step Up Pty Ltd.
Step Up Pty Ltd is a base rate entity (and so
pays tax at 25%). What amount does Daisy
have to include in her assessable income as a
result of receiving this fully franked dividend?
Group of answer choices
a. $4,000
b. $1,062
c. $2,800
d. $3,733
Transcribed Image Text:Daisy, an Australian resident taxpayer, received a fully franked dividend of $2,800 from a small family company; Step Up Pty Ltd. Step Up Pty Ltd is a base rate entity (and so pays tax at 25%). What amount does Daisy have to include in her assessable income as a result of receiving this fully franked dividend? Group of answer choices a. $4,000 b. $1,062 c. $2,800 d. $3,733
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