FNSACC601_Assignment Short Answer and Worked Answer Questions 100%

The following questions are based on the material in the textbook “Advanced Income Tax Law” by Peter Baker, Geoff Cliff & Sonia Deaner, 15th Edition (January 2018) Activity instructions to candidates • This is an open book assessment activity. • You may use a financial calculator or computer application to help calculate values • You are required to read this assessment and answer all questions that follow. • Please type your answers in the spaces provided. • Please ensure you have read “Important assessment information” at the front of this assessment • Estimated time for completion of this assessment activity: approximately 3 hours The following questions are based on the material in Chapter 1: Q1. (Comprehensive calculation for a prescribed person) Ron Veldhuis is aged 16 and is currently studying full-time at high school whilst living with his parents. During the 2017/18 tax year, Ron received the following amounts: $ Gross Wages from part-time job (PAYG tax withheld $800) 4,700 Gross Interest received on fund given by his parents (TFN withheld $4,900) 10,000 Income Distribution from Estate of Late Aunt 7,500 Income Distribution from Family Trust (tax paid by Trustee $1,500) 6,000 Unfranked Dividend from shares in QQQ Ltd (these were bought with funds from previous Family Trust distributions) 1,200 Required: (a) For the purposes of Div 6AA, how much excepted assessable income has Ron derived? (b) For the purposes of Div 6AA, how much eligible assessable income has Ron derived? (c) Calculate net tax payable by Ron for the 2017/18 tax year. The following questions are based on the material in Chapter 2: Q2. (Comprehensive, inter vivos trust) The Alberts Family Trust, an inter vivos trust, had the following beneficiaries: Candy (aged 45; entitled to 40% of trust income) Dandy (aged 30; bankrupt; entitled to 35% of trust income) Landy (aged 17; entitled to 20% of trust income) The remainder of each year's income was to be retained or distributed at the Trustee's discretion. During the 2017/18 tax year trust income was $195,000. A discretionary amount of $7,000 was paid to Landy (this amount was in addition to Landy’s entitlement under the Trust Deed). The trust also had losses of $15,000 in the 2016/17 tax year. These were to be met out of the trust income. Landy also received interest of $38,000 during the 2017/18 tax year from investments given to him by his parents. Landy is single and is not covered by private health insurance. Required: a) Complete the following table (covering all beneficiaries) nominating: ....................................................continued................................................