Michael and Jenny are in a partnership. The partnership records, exclusive of GST, for the year ended 30 June 2020 are as follows:

($) Receipts

440,000

Gross receipts from Trading Stock

($) Payments

120,000

Purchases of Trading Stock

50,000

Partners' salaries (each)

3,000

Interest on a cash advance made to the partnership by Michael

100,000

Salaries for employees and rent paid

1,000

Legal expenses in recovering bad debts

Other important details are stated below:

• Michael and Jenny share partnership profits equally
• TradingStockonhandasat1July2019was$50,000
• Tradingstockonhandasat30June2020was$80,000
• Michael'spersonalrecordsinclude:

oGambling winnings of $500

oNet salary as a part-time Instructor (excluding PAYG Tax Instalments of $1,400) is

$8,000

oSubscription to professional journals of $200oMichael is a member of a private health fund

Required:

CalculateMichael 's Taxable Incomefor the Income year explaining your treatment of each

item noted in this question.