a) Buaysong runs an online business from her home. During the quarter ended 30 June 2020, she has had the following expenses:-
Telephone & internet services (60% for business) 1,000
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Penalty for late payment of tax 777
Car expenses – fuel $783 and interest on loan used to buy the car $1,200 (80% for business purposes)
Bank fees (35% private) 125
Calculate Buaysong’s GST applicable for the quarter. Assume that Buaysong is GST registered and all figures are GST inclusive, where applicable.
b) The following information is provided by Smelly Feet Pty Ltd, a resident company. It is a base rate entity for the income year and thus 27.5% company tax rate applies.
16/12/19 Company tax paid 2,200
17/12/19 Received a 60% franked dividend from a resident public company. The dividend received was from a large ASX listed company that is NOT a small business taxpayer company. 5,000
/06/20 Paid fully franked dividends 8,000
21/06/20 Franking deficit tax paid ???
Prepare Smelly Feet’s Franking Account for the year ended 30 June 2020 assuming the opening credit balance was $340