Jonanyanatang , seling sporting The partnership records, excluding GST, for the ourrent income yes disclose the following Receipts (5) 400,000 10,000 21,000 10,000 50,000 30,000 Sales of sporting goods (see Note 3) Interest on bank deposits Dividend franked to 60 received from an Australian resident company Bad debts recovered Exempt income Capital gain from the disposal of shares acquired in 2009 and sold in June this income year (see Note 4) Payments ($) 10,000 15,000 16,000 2,000 4 000 3,000 Salary to Johnny Salary to Leon Fringe benefits tax Interest on capital provided by Johnny Interest on loan made by Johnny to the partnership Johnny's travelling expenses from home to work and return (see Note 5) 2,000 1 200 700 500 500 25,000 30,000 20 000 30 000 10 000 Legal fees for the renewal of lease of the office building Legal expenses for preparation of a partnership agreement Legal expenses for preparation of new lease of business premises Debt collection expenses paid to a solicitor Council rates on business premises Staff salaries (see Note 6) Purchase of sporting goods supplies Rent on retail shop Provision for doubtful debts (see Note 10) Business lunches (see Note 11) Notes 1 Partnership profits and losses are shared between Johnny and Leon on an equal 2 3 5 basis The partnership is registered as a Small Business Entity (SBE) On 1 January this income year the partners discovered that an employee had stolen $3,000 cash in respect of money received from sales to customers Johnny and Leon made a capital loss of $15,000 from the disposal of shares acquired in 2006 and sold in 2011 Johnny often takes work home as he finds it convenient to plan the next day's work in his home study 6 7 8 9 10 11 12 13 Staff salaries include $10,000 paid to Johnny's son Johnny Jr for washing the partners' cars The Commissioner considers $5,000 to be a reasonable commercial rate for washing the cars Stock at beginning of the year was $20,000 Stock at end of the year was Cost $16,000 (a) Market selling value $18,000 (b) Replacement $17 000 Johnny and Leon did not make an election under s 328 285(2) of ITAA 1997 Johnny and Leon are owed $30,000 by a debtor who is bankrupt They believe it is very unlikely that they will recover any money from the debtor, and do not take any action to recover the money Johnny and Leon spent $10,000 on business lunches with overseas buyers at expensive restaurants In the last income year, Johnny and Leon made a net partnership loss of $40,000 Johnny and Leon wish to minimise their tax liabilities for the income year Calculate the net income for the partnership for the income year

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Jonanyanatang , seling sporting . The partnership records, excluding GST, for the ourrent income yes. disclose the following: Receipts (5): 400,000 10,000 21,000 10,000 50,000

Jonanyanatang , seling sporting .

The partnership records, excluding GST, for the ourrent income yes.

disclose the following:

Receipts (5):

400,000

10,000

21,000

10,000

50,000

30,000

Sales of sporting goods (see Note 3)

Interest on bank deposits

Dividend franked to 60% received from an Australian resident

company

Bad debts recovered

Exempt income

Capital gain from the disposal of shares acquired in 2009 and sold in

June this income year (see Note 4)

Payments ($):

10,000

15,000

16,000

2,000

4.000

3,000

Salary to Johnny

Salary to Leon

Fringe benefits tax

Interest on capital provided by Johnny

Interest on loan made by Johnny to the partnership

Johnny's travelling expenses from home to work and return (see

Note 5)

2,000

1.200

700

500

25,000

30,000

20.000

30.000

10.000

Legal fees for the renewal of lease of the office building

Legal expenses for preparation of a partnership agreement

Legal expenses for preparation of new lease of business premises

Debt collection expenses paid to a solicitor

Council rates on business premises

Staff salaries (see Note 6)

Purchase of sporting goods supplies

Rent on retail shop

Provision for doubtful debts (see Note 10)

Business lunches (see Note 11)

Notes

1. Partnership profits and losses are shared between Johnny and Leon on an equal

basis.

The partnership is registered as a Small Business Entity (SBE).

On 1 January this income year the partners discovered that an employee had stolen $3,000 cash in respect of money received from sales to customers.

Johnny and Leon made a capital loss of $15,000 from the disposal of shares acquired in 2006 and sold in 2011.

Johnny often takes work home as he finds it convenient to plan the next day's work in his home study. 6.

10.

11.

12.

13.

Staff salaries include $10,000 paid to Johnny's son Johnny Jr for washing the partners' cars. The Commissioner considers $5,000 to be a reasonable commercial rate for washing the cars.

Stock at beginning of the year was: $20,000.

Stock at end of the year was: Cost $16,000

(a)

Market selling value $18,000

(b) Replacement $17.000

Johnny and Leon did not make an election under s 328-285(2) of ITAA 1997.

Johnny and Leon are owed $30,000 by a debtor who is bankrupt. They believe it is very unlikely that they will recover any money from the debtor, and do not take

any action to recover the money.

Johnny and Leon spent $10,000 on business lunches with overseas buyers at expensive restaurants.

In the last income year, Johnny and Leon made a net partnership loss of $40,000.

Johnny and Leon wish to minimise their tax liabilities for the income year.

Calculate the net income for the partnership for the income year.