Albert and Alice formed a partnership a few years ago to operate an Online Food Catering business. The partnership agreement includes the following clauses:

Alice to receive interest at the rate of 10% per annum on a loan of $20,000 that she made to the business.

Albert to be paid a salary of $40,000 per annum.

After payment of Alberts salary, partners share profits and losses equally.

After reviewing their tax files, you noted:

Year ended 30 June 2019 The partnership incurred a tax loss of $25,000 in the year ended 30 June 2019.

Year ended 30 June 2020 The partnerships accounting profits for the year ended 30 June 2020 is $120,000 after expensing Alberts salary and interest payable to Alice.

Assessment Tasks: Advice Albert and Alice as to the net income of the partnership and the assessable income of each partner from the partnership for the year ended 30 June 2020. Justify your advice with reference to ITAA sections where appropriate.