Cooking Salt and Corn Pepper are equal partners in a partnership Salt & Pepper Traders. They are both residents of Namibia. An extract of the income statement for the 2020 year of assessment follows:

	N$	N$
Gross profit from trading (note a)		364 800
Rentals (note b)		24 000
Dividends from local companies		4 000
Income		344 800
Less: Expenses		324 400
Stationery (note c)	16 000
Partner Salaries:
Cooking Salt	132 000
Corn Pepper (note d)	121 000
Interest on capital:
Cooking Salt	18 600
Corn Pepper	22 200
Insurance premiums (note e)	8 400
Other deductible expenses	58 000
Depreciation on an office desk & chair (note f)	5 000
Donation to charity (no certificate)	1 200
Partnership profit for the year		10 400

Notes:

In arriving at the gross profit of N$316,800, N$1,200 was included as bad debts recovered. the bad debt arose in the previous financial year when Corn Pepper was still trading on his own.

Cooking Salt owns the building from which they trade. The lease contract for a part of the building provides for a rent payable of N$4,000 per month by the partnership. The remainder of the building is leased to an Accounting Consulting Business. The rent payable under this agreement amounts to N$2,000 per month.

Stationery included a printer of N$10 000, N$1 000 worth of stationery was still on hand at the last day of the year.

The partners should receive equal salaries. The salary for Corn Pepper for February 2020 is still outstanding, while Cooking Salt received his full salary for the year.

The insurance premiums are on the joint lives of the partners.

The office furniture was bought in January 2018 for N$50 000.

The partners had no other receipts or accruals for the year under review.

Assuming a distributable profit of N$10 000 in the partnership, the taxable income for Corn Pepper will be: (4 marks)

a.

N$160 400

b.

N$149 400

c.

N$148 200

d.

N$90 000