Alon is a retired Doctor. His wife Nancy is a retired Social Worker. Both wish to remain active and they invest in a gift shop that is to be managed by their daughter Heather, who is aged 35. They formed a partnership of three called "Heather 's Gift Shop".

Alon and Nancy contributed $40,000 each to fund the purchase of the shop. The partnership agreement provides:

• Both Alon and Nancy are to receive interest at the rate of 10% pa on their capital contribution of $40,000.
• Heather will receive a salary of $25,000 for the management of the shop, as well as superannuation contributions of $6,000.
• A car will be leased by the business and provided to Heather.
• All profits and losses are to be shared equally between the three partners.

The accounts for this income year show the following:

Income ($)
Sales (excluding GST)	240,000
Expenses ($)
Cost of goods sold	130,000
Interest on capital paid to Alon and Nancy	8,000
Salary to Heather	25,000
Superannuation to Heather	6,000
Lease payments on car (excluding GST)	7,000
Other deductible operating expenses (excluding GST)	14,000

The leased car was used 80% of the time for business and 20% of the time for private purposes.

With reference to the facts above:

1. Calculate the net income of the partnership. Show the allocation of net income to each of the three partners and Explain if the provision of the motor vehicle by the partnership to Heather imposes any fringe benefits tax liability on the partnership.