Reference no: EM132801970

During the year ended 30 June 2020, Fedlin Pty Limited (an Australian resident private company) had the following events that might be relevant to its franking account:

1-Jul-2020Opening balance of franking accoun t$65,000

15-Jul-2020Payment of dividend franked to 65% $380,000

3-Aug-2020Payment of payroll tax $170,000

28-Aug-2020Payment of June 19 PAYG instalmen t$27,000

31-Jan-2020Refund of income tax $160,000

22-Feb-2020Receipt of dividend from company outside the group, franked to 80% $280,000

2-Mar-2020Payment of dividend franked to 40% $420,000

31-Mar-20Payment of income tax $54,000

13-Apr-20Refund of land tax $149,000

6-May-20Payment of fringe benefits tax $6,000

30-Jun-20Payment of dividend franked to 70% $380,000

Required:

a) Create the franking account with explanations.

b) Explain any further taxes for which the Company might be liable.