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QUESTION 17 For the year ended 30 June, Restaurants Pty Ltd had a tax loss of $70,000

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QUESTION 17

1. For the year ended 30 June, Restaurants Pty Ltd had a tax loss of $70,000. Its assessable income totalled $100,000 and its deductions totalled $170,000. Included in the assessable income was a partly franked dividend of $20,000 made up of $17,000 received and a franking credit of $3,000.

   What is Restaurants Pty Ltd carried forward tax loss?

   		Nil as companies cannot carry forward losses
   		$73,000
   		$87,000
   		$70,000
   		$80,000

QUESTION 14

1. In relation to the application of Division 7A of the ITAA36, which of the following is incorrect?

   		The amount of the deemed dividend is limited to the company’s distributable surplus
   		The deemed dividend is subject to withholding tax
   		The recipient is deemed to receive a dividend which is assessable under section 44 of the ITAA 36
   		Division 7A applies in priority to FBT in respect to loans and debt forgiveness
   		The deemed dividend is not frankable