QUESTION Elizabeth and Fred operate a retailing business as partners. The partnership is registered for GST and the figures are exclusive of GST. The partnership records for the financial year ending 30 June 2017 disclose: Gross receipts from trading $860,000 Purchases of trading stock $305,000 Salaries paid to the partners $30,000 each Superannuation contributions for Elizabeth and Fred $25,000 each Superannuation paid for employees $64,000 Interest paid to Elizabeth on her capital contribution $3,000 Interest paid to Fred on his capital contribution $2,000 Interest on a cash advance made to the partnership by Elizabeth $2,000 Salaries and holiday leave paid to employees $60,000 Fringe benefits tax paid by the partnership $2,300 Other general and specific deductions $123,400 Other information relating to the partnership is as follows: (1) Elizabeth and Fred share partnership profits in the ratio of 50% each. (2) The partnership chooses to use the capital allowances and trading stock provisions for SBEs. (3) Trading stock on hand 1 July 2016 - $130,000. Trading stock on hand 30 June 2017 - $140,000 (4) A capital gain of $5,000 was made on a partnership asset that had been held for 2 years. (5) The opening general small business entity pool was $120,000. During the year $24,500 of assets were added to that pool. (6) A $12,520 fully franked dividend from an Australian company was paid to the partnership. (7) The fringe benefits tax was paid in respect of a benefit provided to one of the partnerships employees. In addition to the partnership details provided, Elizabeths personal records disclose: Gambling winnings $2,400 Fully franked dividends received $7000 Gross salary paid as a part-time instructor of $15,000. The employer deducted $5,000 as PAYG withholding. Elizabeth purchased a calculator for $250 for her classes that she ran as an instructor. She also paid $500 for the annual membership of a professional association. Elizabeth maintains her elderly mother and her mothers adjusted taxable income for the year was $548. Elizabeth does not have private hospital insurance. Elizabeth received a net dividend of $9,000 from a shareholding in a foreign resident company located in the US. The payment summary issued by that company showed that $1,000 had been withheld at source. REQUIRED: (i) Calculate the net partnership income for the 2016-17 financial year. (ii) Determine the distribution amounts to each of the partners based on your determination in part (i) above. (iii) Determine Elizabeths income tax liability including the Medicare levy for the year ended 30 June 2017 and calculate her refund due or additional tax payable based on your previous calculations.