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

Other important details are stated below: Michael and Jenny share partnership profits equally Trading Stock on hand as at 1 July 2019 was $50,000 Trading stock on hand as at 30 June 2020 was $80,000 Michael 's personal records include: o Gambling winnings of $500 o Net salary as a part-time Instructor (excluding PAYG Tax Instalments of $1,400) is $8,000 o Subscription to professional journals of $200 o Michael is a member of a private health fund Required: Calculate Michael 's Taxable Income for the Income year explaining your treatment of each item noted in this question. (7 marks. Word limit: Minimum of 120 words. Maximum of 150 words)

Gross receipts from Trading Stock ($) Receipts 440,000 ($) Payments 120,000 50,000 3,000 100,000 1,000 Purchases of Trading Stock Partners' salaries (each) Interest on a cash advance made to the partnership by Michael Salaries for employees and rent paid Legal expenses in recovering bad debts Gross receipts from Trading Stock ($) Receipts 440,000 ($) Payments 120,000 50,000 3,000 100,000 1,000 Purchases of Trading Stock Partners' salaries (each) Interest on a cash advance made to the partnership by Michael Salaries for employees and rent paid Legal expenses in recovering bad debts