2007 Basic Course Mid-Term Exam Question 1

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Item number	Amount	Code	Notes and calculations
Income			DISCOUNT ON EMPLOYEE SHARES Shares acquired this year: category 2 Shares acquired in a previous year: category 1
1	11502 50630
2	3410
9	4269
10	1567
11T	87
11U	37
22 category 2	425		(500 x 2.85) = 1425 – 1000 139E exemption = 425
Total tax withheld	11502
Assessable income	56156
Deductions
D1	3300	S	5000 x 0.66
D2	73		Parking and tolls go at item D2
D3	383		295+88
D4	2492	K	Worksheet
D5	340		130+210
D10	155
Total deductions	6743
Taxable income	49413		Assessable income MINUS Total deductions
Tax offsets
Total tax offsets
Other
M2	N 365 days

Tax calculation

Not required in question, but included for students’ interest, and for the HELP calculation.

Taxpayer's name Benita HENDERSON
Taxable income 49413 Threshold 6000
Basic tax payable		10173.90	Notes and calculations
Tax offsets
	MINUS total
	Subtotal	10173.90	Must not be less than zero
Levies etc
Medicare levy	741.20		49413 x 1.5%
Medicare surcharge	536.82		(49413+4269) x 1.0%
HELP	2450		(49413+4269) x 6.0% = 3220.92, but limited to amount payable
SFSS
	PLUS total	3728.02
Tax credits
TIDs (PAYG withholding)	11502
Franking credits	37
Private health ins offset
	MINUS total	11539.00
balance payable or refund due		2362.92	PAYABLE

NOTES

* The dividends must be declared even though the money was not received. This is always the case with dividend reinvestment.