Question
Q6. (Average Income) Ernie Wombat is a primary producer who commenced business in 2012/13. The following data relates to Ernies first 6 years of trading:
Q6. (Average Income) Ernie Wombat is a primary producer who commenced business in 2012/13. The following data relates to Ernies first 6 years of trading: Year Assessable Income Deductions 2012/13 $ 32,000 $ 15,000 2013/14 35,000 20,000 2014/15 31,000 39,000 2015/16 42,000 21,000 2016/17 45,000 22,000 2017/18 51,000 25,000 All assessable income and deductions are from primary production. The deductions do not include any amounts that may be deductible for losses of previous years. Required: a. Calculate Ernies taxable income for each tax year. b. Calculate Ernies average income for each tax year..
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