QUESTION 3 Moyo and Dube are in partnership sharing profits and losses in the ratio 2:3 respectively. Their income statement for the year ended 31 December 2022 showed a net profit of $800 000. The following information is available. Included in their income are the following:

Interest on tax reserve certificates $40 000 POSB Interest $35 000 Dividends received from Zimbabwe Companies $60 000 Expenses deducted in the income statement were:

Depreciation on non-current assets $100 000 Insurance premiums: Partnership joint life policy $50 000 Life policies on behalf of partners: Moyo $20 000 Dube $30 000 Interest on capital accounts Moyo $64 000 Dube $50 000 Contributions to pension fund: Moyo $10 000 Dube $10 000 Medical Aid Contributions: Moyo $46 000 Dube $30 000 Medical Expenses Incurred Moyo $20 000 Dube $25 000 Salaries Moyo $90 000 Dube $85 000

Additional Information

During the year, the partnership purchased the following assets: Office Furniture $300 000 Mazda 626 $400 000 Moyo borrowed the amount he used to purchase his share in the partnership practice and paid $5 000 interest. During the year, the partnership, made the following donations, which were not taken into account when determining the above profit figure: National Scholarship Fund $10 000 Ministry of Health and Child Welfare for the purchase of drugs $120 000

Required Calculate the partnerships joint taxable income and the taxable income of the individual partners. (25 Marks)