Jay Jays is a large pizza bar restaurant chain of 3 shops in Melbourne (located city, north and south) owned by Jagjeet and Jiera. The books of account for 2020 income year reveal the following:

Sales	1,500,000
Closing stock	20,000
Opening Stock	10,000
Purchases	300,000
Various business expenses	589,000
- Advertising	6,000
- Electricity	12,000
- Insurance	9,000
- Interest on loan - premises	160,000
- Rent	100,000
- Staff wages	300,000
- Telephone	2,000
Other expenses	121,000
- Bad Debt	1,000
- Depreciation	100,000
- Repairs	15,000
- Tax agent expenses	5,000
Salaries	83,200
- Salary for Jagjeet	52,000
- Salary for Jiera	31,200

Jagjeet and Jieras partnership agreement provides that profits are to be distributed equally and that wages should be paid weekly by the partnership to the partners as mutually agreed. Jagjeet is paid $1,000 a week and JIera is paid $600 a week.

REQUIRED

Part 1

Advise what is the net income of the partnership hint use this table to prepare your answer

Issue	Law applicable only (NB reasons or explanation not required! )	Impact on Net income

Part 2

Are the partners salaries deductible - advise your reasons and provide case law and relevant rulings.?

Part 3

Advise the tax liability of Jagjeet only, taking into account the distribution of the partnership net income