Past Year Paper for Fnsacc601A Marking Guide Essay Example

Past Year Paper for Fnsacc601A Marking Guide Essay 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 1 2 3 4 5 6 7 Marks available 15 6 15 15 10 15 24 100 Mark Required to Achieve Competency 8 3 8 8 5 8 12 52 The purpose of the Marking guide is to ensure that adequate information is provided for consistent marking to take place. This will help ensure that Australian Quality Training Framework requirements for assessment reliability are met.Refer to the informa tion in the footer space of this document to identify: ? the correct Assessment guide this document refers to—the footer information in the Assessment guide and corresponding Marking guide must match ? whether you have the latest version of this Marking guide. 2 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 Question 1 (15 marks) a) 7 marks (deduct 1 mark per error) Assessable income Gross income Bank interest received Deductions Salaries -employees Superannuation -employees Interest on loan -Sally -Whitehouse finance Other expenses General asset pool decline in value 30% of $100,000 Partnership net income $ 414,000 2,000 105,000 10,000 3,000 18,000 133,000 30,000 $ 416,000 299,000 117,000 (b) 4 marks (deduct 1 mark per error) $ Partnership net income, as above Less Salary Harry Sally Interest on capital Harry Sally Adjusted net income 60,000 40,000 7,000 5,000 $ 117,000 12,000 5,000 Salaries $ Harry Sally PARTNERSHIP DISTRIBUTION STATEMENT Int. on capital $ Adj net income $ Share of net inc. $ 60,000 7,000 2,500 69,500 40,000 5,000 2,500 47,500 100,000 12,000 5,000 117,000 (c) 4 marks (deduct 1 mark per error) Assessable income Share of partnership net income Interest of loan to partnership Share of net capital gain ? ($500,000 320,000) less 50% discount Allowable deduction: Tax loss carried forward from the 2009/10 year Taxable income $ 47,500 3,000 45,000 95,500 15,000 80,500LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 3 Question 2 (6 marks) Each part is worth 2 marks Part A Answer is (e) None of the above one quarter of ($130,000 + $150,000) = $70,000 Answer is (e) None of the above ($96,000 + $50,000) = $146,000 Answer is (a) $90,000 ($85,000 + $25,000 $20,000) = $90,000 Part B Part C 4 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011Question 3 (15 marks) (a) 9 marks (deduct 1 mark per error) Assessable Income Employer contributions 125,000 + 20,000+ 15,000 Foreign Income – Canadian trust 40,000 + 10,000 Franked dividends – Private Pty Ltd Franking credit – Private Pty Ltd 21,000 x 30/70 Net Capital Gain Franked dividends – Listed companies Franking credits – listed companies 24,500 x 30/70 Allowable Deductions Life Insurance Premiums Administration costs $ 160,000 50,000 21,000 9,000 81,000 24,500 10,500 6,000 4,000 356,000 $ 10,000 346,000Net Capital Gain Gain on shares in Private Pty Ltd Gain on shares in ANZ Bank Ltd Gain on shares in Landfill Mining NL Less discount 1/3 (109,000 – 25,000) 45,000 – 21,000 135,000 – 75,000 30,000 – 5,000 $ 24,000 60,000 25,000 109,000 28,000 81,000 (b) 6 marks (deduct 1 m ark per error) Tax Payable Tax on excessive non-arms length (50% x 30,000) x 45% income Tax on contributions with no TFN 5,000 x 46. 5% Tax on low component (346,000 – 15,000 – 5,000) x 15% Less Franking credit offset Foreign tax credit PAYG Instalments Tax Refundable $ $ 6,750. 00 2,325. 0 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 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 5 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 o n $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 payable 45% x 30,000 15% x (17,500 – 6,000) 1. 5% x 47,500 13,500. 00 1,725. 00 712. 50 15,937. 50 12,675. 00 800. 00 13,475. 00 2,462. 50 6 LT014090 Workplace Simulation (Test A) Marking Guide, FNSACC601A Edition 1 2 Â © 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 Tr ust 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 Â © New South Wales, Department of Education and Training 2011, Version 1, June 2011 7 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 mana gement deposits Other operating Costs Decline in value $ 585,000 300 $ 585,300 (3 x 20) + (5 x 4) landcare operations 1/3 x 12,000 1/10 x 6,000 54,000 – (3 x 2,000) Laptop computer (