Question 1 (POTL end of chapter question 19.1, adapted) Peter and Jill are in a partnership as retailers of electrical goods. They are both Australian resident taxpayer. The partnership records for the 2019-2020 income year reveal the following: Receipts ($): 800,000 Gross receipts from trading Payments ($): 180,000 Purchases of trading stocks 30,000 Partners' salaries (each) 5,000 Bonus paid to Peter as he manages several aspects of the business 2,000 Interest on a six-month cash advance (a loan) made to the partnership by Peter to fund working capital 159,000 Salaries for employees 40,000 Rent paid to Jill 2,000 Legal expenses in recovering bad debts Other relevant details are: Peter and Jill agreed to each take a salary of $30,000 and Peter a bonus of $5,000. They share remaining partnership profits 50:50 The value of trading stock as at 30 June 2019 is $20,000 The value of trading stock as at 30 June 2020 is: Cost price, $30,000 Market selling value, $32,000 Replacement value, $30,500 Jill's personal records disclose that she received fully franked dividends from a very large listed retail company of $700 during the 2019-2020 income year Jill purchased the property used as business premises in 2012 for a total price of $800,000. Jill received details of the original construction costs in writing. The building was originally built in 2003 at a construction cost of $500,000. During the current income year, interest on the mortgage loan that funded the purchase of the building totaled $12,500. Peter's personal records for the 2019-2020 income year disclose: Gambling winnings: $2,000 Net salary as a part-time judo instructor (excluding PAYG of $2,000): $5,000 Subscription to professional journals for judo instructors: $500 You are required to: a. Calculate the net income of the partnership for the 2019-2020 income year. Show all your calculations, provide reasons for your answers, reference relevant sections and divisions of the Income Tax Assessment Acts and relevant case law b. Calculate Peter's taxable income for the 2019-2020 income year. Show all your calculations, provide reasons for your answers, reference relevant sections and divisions of the Income Tax Assessment Acts and relevant case law c. Calculate Jill's taxable income for the 2019-2020 income year. Show all your calculations, provide reasons for your answers, reference relevant sections and divisions of the Income Tax Assessment Acts and relevant case law d. Explain how your answer to part b and part c will change, if at all, if gross receipts from trading totaled $600,000, and Peter's salary as per the partnership agreement totals $300,000, while Jill is not entitled to any salary, and they still share the remaining profits 50:50