CC601 Prepare and administer compliant tax returns for legal entities sment 2 Written Questions Portnership-taxable income of portner t. Shark and Starfish operate a business which conducts deep sea finishing trips Their partnership agreement states that all profits and losses are to be shared in the ratio of The receipts and payments of the business for the 2015/2016 tax year were as follows 32.1 after alowing for partner's salaries, interest on capital, and interest on drawings 3:2:1 after allowing for partner's salaries, interest on capital, and interest on drawings RECEIPTS Gross Income-Boat Charters PAYMENTS $491,000 Boat operating expenses Salary - Mullet Salary-Shark Salary- employee Superannuation - Mullet Superannuation-Shark Superannuation- employee Interest on Capital- Mullet Interest on Capital- Shark Interest on Capital- Starfish Interest on loan-Stingray Bank Interest on loan-Shark Drawings- Mullet Drawings -Shark Drawings-Starfish Other deductible expenses 554,000 $60,000 $18,000 536,000 $5,000 $4,000 $3,000 514,000 $11,000 $6,100 $15,000 $27,000 $20,000 $15,000 $10,000 555,000 OTHER INFORMATION: Interest on drawings is charged at 12% of total annual drawings. Decline in Value deduction amounted to $92,000 There were no debtors or creditors as the partnership settled all accounts when issued Required a) b) c) Calculate the partnership net income for the year. Prepare a partnership distribution statement. Calculate Shark's taxable income (Shark did not have any other income or deductions) Provider No. 52128, CRICOS No: 03188C, Version: 1.1; Date Jan 2017