Alex is an Australian resident for tax purposes. She currently works as a financial advisor in Melbourne. Her total salary for the income year ended 30 June 2020 is $120,000, from which her employer withheld Pay As You Go (PAYG) income tax instalments totalling $34,217.00. Alex also has a share portfolio which has generated franked dividends of $7,000 and franking credits of $3,000. Alex took out a loan to purchase the shares and she incurred interest expenses of $5,000. What is Alex’s assessable income?
Alex is an Australian resident for tax purposes. She currently works as a financial advisor in Melbourne. Her total salary for the income year ended 30 June 2020 is $120,000, from which her employer withheld Pay As You Go (PAYG) income tax instalments totalling $34,217.00. Alex also has a share portfolio which has generated franked dividends of $7,000 and franking credits of $3,000. Alex took out a loan to purchase the shares and she incurred interest expenses of $5,000. What is Alex’s assessable income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Alex is an Australian resident for tax purposes. She currently works as a financial advisor in Melbourne. Her total salary for the income year ended 30 June 2020 is $120,000, from which her employer withheld Pay As You Go (PAYG) income tax instalments totalling $34,217.00.
Alex also has a share portfolio which has generated franked dividends of $7,000 and franking credits of $3,000. Alex took out a loan to purchase the shares and she incurred interest expenses of $5,000.
What is Alex’s assessable income?
Select one:
$125,000
$122,000
$127,000
$130,000
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