JOINT VENTURES AND INDIVIDUAL CO-VENTURERS

CJ AND DIANE FORMED A JOINT VENTURE. THEY AGREED TO SHARE PROFIT OR LOSS IN THE RATIO OF 70% AND 30% RESPECTIVELY. THE RESULTS OF OPERATIONS WERE PROVIDED BELOW: JOINT VENTURE

GROSS INCOME - 50,000,000

BUSINESS EXPENSE - 30,000,000

CJ

GROSS INCOME - 30,000,000

BUSINESS EXPENSE - 20,000,000

DIANE

GROSS INCOME - 20,000,000

BUSINESS EXPENSE - 15,000,000

ASSUMING THE ABOVE JOINT VENTURE IS A TAXABLE JOINT VENTURE AND TAX-EXEMPT JOINT VENTURE, DETERMINE THE FOLLOWING

1. TAXABLE INCOME OF THE JOINT VENTURE

2. INCOME TAX PAYABLE OF THE JOINT VENTURE

3. TAXABLE INCOME OF CJ

4. TAXABLE INCOME OF DIANE

5. FINAL TAX DUE OF CJ

6. FINAL TAX DUE OF DIANE