Required: Only advise on the consequences for XYZ Pty Limited NOT its shareholders.
Required: Only advise on the consequences for XYZ Pty Limited NOT its shareholders.
Chapter2: The Domestic And International Financial Marketplace
Section2.A: Taxes
Problem 2P
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5. XYZ Pty Ltd had the following transactions relevant to its franking account during the year ended 30 June 2021. It pays tax at the rate of 30%.
- On the 1st July 2020 its franking account balance was $10,000
- On 10 July 2020 it paid a dividend of $50,000 franked to 70% to its shareholders
- On the 30th July it paid Company Income Tax of $60,000.
- On 1 August 2020 it paid a dividend of $50,000 franked to 50% to its shareholders.
- Then on 1 March 2021 it paid a dividend of $30,000 franked to 90% to its shareholders.
Required:
Only advise on the consequences for XYZ Pty Limited NOT its shareholders.
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