Billy and Bob are a business partnership. They agree that Billy will receive a wage of $50,000 because he works in the shop. Bob will receive interest of $20,000 on his initial capital contribution. Then profits are to be split 50/50.

Business accounts for the 2020 tax year showed the following:

Sales of $440,000

Purchase of trading stock $225,000

Value of stock on hand 30 June 2018 $85,000

Value of stock on hand 30 June 2019 $46,000

Wages to Billy $50,000

Interest to Bob on his capital account $20,000

Required: Calculate each partners taxable income for the 2019 tax year. You must refer to relevant law and show calculations.