Page 3 of 3 Section II Case Study Questions (Total - 30 Marks) Question 6 (10 marks) Robert purchased his home on 1 July 2000. He lived in the home for two years and then was posted overseas for eight years, during which time he leased the house to tenants. On his return he continued to live in the home until it was sold on 30 June 2013. Requirement: Advise Robert as to whether he will be able to use the main residence exemption. Question 7 (10 marks) Rachel and Bill carry on a partnership together with gross receipts for the current income year of $ 80,000. During the year the following payments were made:- $ Purchase of trading stock 18,000 Wages to employees 10,000 Advances to Rachel 35,000 Lease payments on two cars 4,000 Rachel and Bill share the profits in the ration of 3:1. Stock on hand at the beginning of the year was $ 3,000 and at the end of the year was $ 3,400. Both cars were used for business purposes, but Bill uses his 40% for private purpose as well. Bill also works part-time as a trainer and generated a gross income of 12,000. He subscribes magazines that update his knowledge on the industry and trainings to be provided to his own clients and it costs him $ 800 in annual subscription fees. He also received fully franked dividends from ABC Company of $1,125 in the current income year. Requirements: a) Calculate the net income of the partnership and the assessable income of the partners. b) Calculate the final tax liability of Bill.