Kevin and Ian are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for the financial year ending 30 June 2019 disclose: Receipts ($): Gross receipts from trading 500,000 and additional receipt for bad debts recovered 10,000 Payments ($): Purchases of trading stocks 100,000 Partners salaries (Kevin) 50,000 Interest 10,000 (on cash advanced for working capital made to the partnership by Kevin) Salaries (for employees and rent paid) 60,000 Legal expenses (in recovering bad debts) 1,000 Other details about the partnership: Kevin and Ian share partnership profits equally Trading stock on hand 1 July 2018: $10,000 Trading stock on hand 30 June 2019: $20,000 Other details about Kevin: Kevins personal records disclose: Gambling winnings: $2,000 Fully franked dividends: $7,000 Net salary as a part-time instructor (excluding PAYG tax instalments of $2,000): $5,000 Subscription to professional journals: $500 Kevin and his family members are members of a private hospital fund Page 3 of 3 REQUIRED: 1. Calculate the net partnership income for the partnership for the year ended 30 June 2019. 2. Calculate Kevins taxable income and tax liability for the year ended 30 June 2019. You must explain your treatment of each item in this question by referring to sections of the Income Tax Assessment Acts, Case Law and Tax Rulings, and analyse why to apply them in the relevant context. [20 marks]