QUESTION 5

1. Jim, Tim and Lim co-own a building together. They each contributed equally to the cost of the building. As Jim and Tim are bachelors whereas Lim has two young children, they decided that the rental income from the building should be distributed as follows:

   Jim: 20%

   Tim: 20%

   Lim: 60%

   They earned a total of $60,000 in rental income from the building last year.

   How much will Lim need to include in his assessable income for the year in respect of the rental from the building?

   		$36,000
   		$15,000
   		$12,000
   		$20,000
   		It will depend on how much salary Lim was paid from the partnership