Alastair is a retired programmer. His wife Fransiska is a retired accountant. Both wish to remain active in their old age and they invest in a Doll shop that is to be managed by their daughter Sophie, who is aged 35. The three of them form a partnership of three called Wishfuls Doll Shop. Alastair and Fransiska contributed $90,000 each to fund the purchase of the shop. The partnership agreement provides: Both Alastair and Fransiska are to receive interest at the rate of 10% pa on each of their capital contribution of $90,000. Sophie will receive a salary of $45,000 for the management of the shop, as well as superannuation contributions of $9,000. A car will be leased by the business and provided to Carol. (100% used for business) All profits and losses are to be shared equally between the three partners.

12 Theory Upto 12 har little Worly X odt O File 1 C:/Users/krish/videos/Desktop/paean/taxation%20law%20final.pdf Draw Highligh A Read aloud + EL Page view Q 590,000 The accounts for this income year show the following: Income ($) Sales (excluding GST) Expenses ($) Cost of goods sold Interest on capital paid to Alasdair and Tracy Salary to Carol Superannuation to Carol Lease payments on car (excluding GST) Other deductible operating expenses (excluding GST) 290,000 27,000 45,000 9,000 8,500 34,000 Additional Information during the tax year: Alastair won a lottery for $100,000 (This is the first time Alastair bought a lottery) In his spare time Alastair also gives private tutoring for some programming languages. During the year he earned $15,000 from this activity Alastair lent $40,000 during the year as the business struggles in earlier months due to COVID-19 lockdown. Alastair will receive 5% interest from the partnership on it. Required: With reference to the facts above: a) Calculate the net income of the partnership b) What is the assessable income for Alastair during this tax year? e here to search B a acer 12 Theory Upto 12 har little Worly X odt O File 1 C:/Users/krish/videos/Desktop/paean/taxation%20law%20final.pdf Draw Highligh A Read aloud + EL Page view Q 590,000 The accounts for this income year show the following: Income ($) Sales (excluding GST) Expenses ($) Cost of goods sold Interest on capital paid to Alasdair and Tracy Salary to Carol Superannuation to Carol Lease payments on car (excluding GST) Other deductible operating expenses (excluding GST) 290,000 27,000 45,000 9,000 8,500 34,000 Additional Information during the tax year: Alastair won a lottery for $100,000 (This is the first time Alastair bought a lottery) In his spare time Alastair also gives private tutoring for some programming languages. During the year he earned $15,000 from this activity Alastair lent $40,000 during the year as the business struggles in earlier months due to COVID-19 lockdown. Alastair will receive 5% interest from the partnership on it. Required: With reference to the facts above: a) Calculate the net income of the partnership b) What is the assessable income for Alastair during this tax year? e here to search B a acer