Background For the purposes of this exam question you are a graduate accountant working in a public practice accounting firm.

Background For the purposes of this exam question you are a graduate accountant working in a public practice accounting firm. Your boss has handed you a client file containing the below information relating to the following two resident, adult taxpayers Frankie Kay and Kerry Torres, who are both clients of the practice. These individuals are in a de factor relationship and reside at the same address. Frankie Kay’s Information Information Source 1: Frankie’s Australian Tax Office Prefiling report for 2022 contains the following information * Gross Payment from Salary & Wages $120,000 (Occupation: Social Worker) Allowances in relation to Salary & Wages: Car Allowance $ 5,000 Clothing Allowance 5 2,000 PAYG Withholding on Salary & Wages $ 29,000 Interest from Bank of Us 5 5,000 ($2,350 tax withheld) Private Health insurance information showing full coverage for Frankie Kay for the entire financial year. Share related transactions Sale of 500 BHP Ltd (BHP) shares (13/08/2021} Purchase of 1,000 Xero Lid (XRO) shares (01/10/2021} Sale of 1,000 Macquarie Group Led (MOG) shares (03/06/2022) Your boss has helpfully written the following comments on the back of the prefilling report Parcel of 500 BHP shares sold above were purchased 30/10/2020 at $33.78 per share BHP share price on 13/08/2021 was $52.81 per share Parcel of 1,000 MOG shares sold above were purchased 27/08/2020 at $80.01 per share MOG share price on 08/06/2022 $184.04 The client has a $10,000 loss carried forward from shares sold in prior years.