Adam and Mandeep are in a partnership in retailing computer accessories. The partnership records, exclusive of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Adam and Mandeep are in a partnership in retailing computer accessories. The partnership records, exclusive of GST, for this income year, disclose: Receipts ($): 530,000 Payments ($): 175,000 70,000 12,000 150,000 9,000 Other details: Gross receipts from trading Purchases of trading stocks Partners' salaries (each) Interest on cash advance made to the partnership by Adam Salaries for employees and rent paid Legal expenses in recovering bad debts. Adam and Mandeep share partnership profits equally Trading stock on hand 1 July: $25,000 Trading stock on hand 30 June: $30,000 Adam's personal records disclose: • Gambling winnings: $10,000 • Net salary as a part-time instructor (excluding PAYG tax instalments of $6,000): $20,000 . Subscription to professional journals: $3,500 Adam is a member of a private health fund Calculate Adam's taxable income for the income year explaining your treatment of each item in this question. Adam and Mandeep are in a partnership in retailing computer accessories. The partnership records, exclusive of GST, for this income year, disclose: Receipts ($): 530,000 Payments ($): 175,000 70,000 12,000 150,000 9,000 Other details: Gross receipts from trading Purchases of trading stocks Partners' salaries (each) Interest on cash advance made to the partnership by Adam Salaries for employees and rent paid Legal expenses in recovering bad debts. Adam and Mandeep share partnership profits equally Trading stock on hand 1 July: $25,000 Trading stock on hand 30 June: $30,000 Adam's personal records disclose: • Gambling winnings: $10,000 • Net salary as a part-time instructor (excluding PAYG tax instalments of $6,000): $20,000 . Subscription to professional journals: $3,500 Adam is a member of a private health fund Calculate Adam's taxable income for the income year explaining your treatment of each item in this question.
Expert Answer:
Answer rating: 100% (QA)
Answer Adams taxable income for the income year is 121500 Gross receipts from trad... View the full answer
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
Students also viewed these accounting questions
-
The Monroe Mfg Co. is a job shop that specializes in precision parts for firms in the aerospace industry. The figure below shows the current block plan for the factory's 75,000 square foot facility....
-
Baker Machine Company Is a Job shop that specializes in precision parts for firms in the aerospace industry. Figure shows the current block plan for the key manufacturing centers of the...
-
Precision Parts is a job shop that specializes in producing electric motor shafts. The average shaft size for the E300 electric motor is 0.55 inch, with a standard deviation of 0.10 inch. It is...
-
The owner of a smoky bar in a warm climate relies on natural exchange between the bar and outside to keep smoke levels manageable in the bar (below 50 microgram/m). Smokers account for a smoke PM10...
-
The College Board website provides much information for students, parents, and professionals with respect to the many aspects involved in Advanced Placement (AP) courses and exams. One particular...
-
What unusual structural feature is found in the elemental forms of boron?
-
On January 6, 2005, a company pays $120,000 for a patent with a remaining 17-year legal life to produce a toy expected to be marketable for three years. Prepare entries to record its acquisition and...
-
Lionels Life Jacket Rentals leases life jackets each day from a supplier and rents them to customers who use them when they raft down the Delaware River. Each day, Lionel leases 30 lifejackets from...
-
Title Construct a triangle given that the perimeter is 115 mm, the altitude is 40 mm and the vertical... Description Construct a triangle given that the perimeter is 115 mm, the altitude is 40 mm and...
-
John Little who is single is a new client of yours that has come to you with several tax issues with which he needs your help. He is an engineer that has his own practice for which he files a...
-
You are asked to compare two different ways of parallelizing the SAXPY loop using the pthread library. SAXPY is a function within the standard Basic Linear Algebra Subroutines (BLAS) library and...
-
Payton Architectural Designs Inc. has three partners that each earn $80,000 per year, and three associates that earn $58,000 per year. Each partner and associate has 2,000 billable hours per year....
-
What is the interquartile range (IQR) of this data set? 2, 6, 7, 11, 15, 16, 17
-
The polynomial f(x)=x-6x + px + 10,pe R. X,x2 and x, are zeroes that form an arithmetic sequence. a Find b Find X, X2 X3. c Hence find all the zeroes. d Calculate the value of p. (1) (1) (7) (3)
-
Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on the basis of standard costs. The following data are for September: K4 X7 Standards Direct materials...
-
What is the z-score of x, when x = 430 and X-N(510,88) p=510, = 88?
-
Exercise 6-7 Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above cost. During 2014 and 2015, such sales amounted to $440,280 and $496,800,...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
The Bennet Company purchases one of its essential raw materials from three suppliers. Rennets current policy is so distribute purchases equally among the three. The owners son, Benjamin Rennet, just...
-
Wiebe Trucking. Inc. is planning a new warehouse to serve the west. Denver, Santa Fe, and Salt Lake City are under consideration. For each location, annual fixed costs (rent, equipment. and...
-
Suppose that you were conducting a market analysis for a new textbook about technology management. What would you need to know to identify a market segment? How would you make a need assessment? What...
-
Why are the most profitable companies the ones that gain the most by issuing new shares?
-
Should there be an issue of new shares whenever the share price is overvalued?
-
What techniques can be used for choosing shareholders?
Study smarter with the SolutionInn App