Fnscc601a Answers

FNSACC601A Prepare complex tax returns

Test A – Marking Guide
Important advice about this Marking guide
This document provides detailed guidance for assessors or teachers only. It is to be used as a reference document for marking. It is not for use as a recording document. It is not appropriate under any circumstances to issue this document to students.

About this guide
This document contains advice for assessors and teachers, to allocate marks or results for all the learning activities for FNSACC601A - Prepare complex tax returns. Students must be competent in each element to pass this assessment In order to achieve competency in this assessment you must meet the requirements set out in the table below for each question.

Question
$

$ 6,750.00 2,325.00 48,900.00 57,975.00

(9,000 + 10,500)

19,500.00 7,500.00 36,500.00 63,500.00 5,525.00

LT014090 - Workplace Simulation (Test A) Marking Guide, FNSACC601A - Edition 1 & 2 © New South Wales, Department of Education and Training 2011, Version 1, June 2011

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Question 4 (15 marks)
(a) 5 marks (deduct 1 mark per error) Beneficiary Present Legal Entitlement Disability Lindy Y N Rock Y Y Cindy Y N Dot Y Y Balance N n/a Who assessed Lindy Trustee Cindy Trustee Trustee Section(s) applicable 97 98 97/101 98 99 Amount $ 30,000 20,000 36,000 17,500 16,500 120,000

(b) 6 marks (2 marks per trustee assessment – deduct 1 mark per error) Tax payable by Trustee Sec 98 Trustee a/c Rock Tax on $20,000 Medicare Levy Less Low Income Offset 15% x (20,000 -6,000) 10% x (20,000 – 18,488) $ 2,100.00 151.20 2,251,20 1,500.00 751.20

Sec 98 Trustee a/c Dot Tax on $17,500 Medicare Levy Less Low Income Offset 15% x (17,500 -6,000) below threshold $ 1,725.00 Nil 1,725,00 1,500.00 225.00

Sec 99 Trustee (balance) Tax on $16,500

15% x (16,500 -6,000)

1,575.00

(c) 4 marks (deduct 1 mark per error) Tax payable by Dot Tax on eligible income ($30,000) Tax on excepted income ($17,500) Medicare Levy Less s100 credits (12,450 + 225) Low Income Offset 1500-4% (47,500-30,000) Tax
LT014090 - Workplace Simulation (Test A) Marking Guide, FNSACC601A - Edition 1 & 2 © New South Wales, Department of Education and Training 2011, Version 1, June 2011

Question 5 (10 marks)
(a) 3 marks (deduct 1 mark per error) Retainer – Football Club Trust Distribution – deceased estate Net business income Interest Excepted assessable income $ 15,000 6,000 9,700 500 31,200

(10,000 – 300)

(b) 3 marks (deduct 1 mark per error) $ 31,000 2,800 33,800

Income from discretionary trust Unfranked dividends Eligible assessable income (c) 4 marks (deduct 1 mark per error)

Tax on excepted income of $31,200 Tax on eligible income of $33,800 Medicare levy on $65,000 Less s100 credit Low income offset 1500-(65,000-30,000) x 4% Tax Payable

15% (31,200-6,000) 45% x 33,800 1.5% x 65,000 12,915 100

$ 3,780 15,210 975 19,965 13,015 6,950

LT014090 - Workplace Simulation (Test A) Marking Guide, FNSACC601A - Edition 1 & 2 © New South Wales, Department of Education and Training 2011, Version 1, June 2011

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Question 6 (15 marks)
(a) 10 marks (deduct 1 mark per error) ASSESSABLE INCOME Gross profit – livestock trading Balancing adjustment -computer DEDUCTIONS Rations Rabbit-proof fence Water facility - dam Phone lines Agistment Farm management deposits Other operating Costs Decline in value $ 585,000 300 $