A1 Roofs Pty Ltd, Rachel and The Smith Family Trust - PARTNERSHIP TRADING AS RIGHT ROOF PROFIT AND LOSS - 30 JUNE 2022 1. The partnership received an apprenticeship rebete from the govemment to assist with the cost of apprentices that the partnership currenty employs 2. The accountant advised that the closing stock value at cost was $280.000, market value $390.000 and goplacement value 5320.000 The accountant Surther advised that the partners want to value stock for tax purposes in the most tax-etloctive manner. 3. A1 Roofs Ply Lid lent the partnership $450,000, so the partnership would not hawe to borrow trom the bank to finance the stock purchase. The \$35, 000 interest relates to this loan. All three partners, in accordance with their partnership interest, lent the partinership a total of $250,000 and charged $35. 000 in interest. 4 The partnership incurred legal fees during the year on the following matters preparation of standaud terms and condtions for the sale of $15,000 and a legal dispule conceming the partnership name 'Right Roof' relating to a competitor taking action for copying the conpetilor's trading narre 'Rigit Roof to1' cost $30,000 5. The accountant has taken up the following movements in the provision accounts doubtul debts $35.000. long service leave 510 . 000 and accried sick leave $10,000 6. The partnership made a loss of $15.000 in the June 2021 year 1. The partnership received an apprenticeship rebate fiom the government io assist with the cost of apprentices that the partnership currently employs 2. The accountant advised that the closing stock value at cost was $280.000, markot valuo $330,000 and geplacement value $320.000. The sccountant Aurther advised that the partnors want to value stock for tax purposes in the most tax-eftective manner 3. A1 Roofs Ply Lid lent the partnership $450,000, so the partnership would not have to borrow trom the bank to finance the stock purchase The $45. 000 interest relates to thes Ioan. All three partners, in accordance with their partnership interest. lent the parthership a total of $250,000 and charged $35, 000 if interest 4. The partnership incurred legal fees duning the year on the following matters preparation of standard temms and cond tions for the sele of $15, oco and a legal dispute concerning the partnership name 'Right Roof relating to a competitor taking acion for copying the coenpetior's irading narne 'Right fiool to1 cost $30.000 15. The accountant has taken up the following movements in the provision accounts doubtful debts $35,000, long service leave sto 000 and accrued sick leave $10,000 6. The partnership made a loss of $15.000 in the June 2021 year Address the following and justify your answer using legislation and case law where applicable: a. Calculate the Partnership's taxable income for June 2022. T10 Marks) b. Calculate A1 Roofs Pty Ltd tax payable for June 2022. (10 Marks) A1 Roofs Pty Ltd, Rachel and The Smith Family Trust - PARTNERSHIP TRADING AS RIGHT ROOF PROFIT AND LOSS - 30 JUNE 2022 1. The partnership received an apprenticeship rebete from the govemment to assist with the cost of apprentices that the partnership currenty employs 2. The accountant advised that the closing stock value at cost was $280.000, market value $390.000 and goplacement value 5320.000 The accountant Surther advised that the partners want to value stock for tax purposes in the most tax-etloctive manner. 3. A1 Roofs Ply Lid lent the partnership $450,000, so the partnership would not hawe to borrow trom the bank to finance the stock purchase. The \$35, 000 interest relates to this loan. All three partners, in accordance with their partnership interest, lent the partinership a total of $250,000 and charged $35. 000 in interest. 4 The partnership incurred legal fees during the year on the following matters preparation of standaud terms and condtions for the sale of $15,000 and a legal dispule conceming the partnership name 'Right Roof' relating to a competitor taking action for copying the conpetilor's trading narre 'Rigit Roof to1' cost $30,000 5. The accountant has taken up the following movements in the provision accounts doubtul debts $35.000. long service leave 510 . 000 and accried sick leave $10,000 6. The partnership made a loss of $15.000 in the June 2021 year 1. The partnership received an apprenticeship rebate fiom the government io assist with the cost of apprentices that the partnership currently employs 2. The accountant advised that the closing stock value at cost was $280.000, markot valuo $330,000 and geplacement value $320.000. The sccountant Aurther advised that the partnors want to value stock for tax purposes in the most tax-eftective manner 3. A1 Roofs Ply Lid lent the partnership $450,000, so the partnership would not have to borrow trom the bank to finance the stock purchase The $45. 000 interest relates to thes Ioan. All three partners, in accordance with their partnership interest. lent the parthership a total of $250,000 and charged $35, 000 if interest 4. The partnership incurred legal fees duning the year on the following matters preparation of standard temms and cond tions for the sele of $15, oco and a legal dispute concerning the partnership name 'Right Roof relating to a competitor taking acion for copying the coenpetior's irading narne 'Right fiool to1 cost $30.000 15. The accountant has taken up the following movements in the provision accounts doubtful debts $35,000, long service leave sto 000 and accrued sick leave $10,000 6. The partnership made a loss of $15.000 in the June 2021 year Address the following and justify your answer using legislation and case law where applicable: a. Calculate the Partnership's taxable income for June 2022. T10 Marks) b. Calculate A1 Roofs Pty Ltd tax payable for June 2022. (10 Marks)
