QUESTION2.13 (Calculationofincomefrombusiness)

The following are resident taxpayerswho derive income from conducting business.

Eachtaxpayeroperatesonanaccrualbasisfortaxpurposes,except

Ritawhousesthecashbasis.

• Herbie operates a smash repair business and is registered for GST. During the year, he invoiced his customers $77,000 (GST incl.).

• Ripoperatesasaclothingwholesaler andisregisteredforGST.During the year, he received $420,000 from customers (GST excl.). His debtors account balances were as follows:

Asat3OJune2021,thebalanceofRip'sdebtorstotalled$69,300 (GST excl.).

As at 3O June 2022, the balance of Rip's debtors totalled $66,000 (GST excl.)

• Jo trades as a sole practitioner architect. She has three employees, twoofwhom are also professionalarchitectswho deal directlywith herclients. Duringtheyear, shereceived$900,000(GSTexclusive) in fees from clients.

Asat30 June 2021,thebalance of Jo's debtors totalled $33,000 (GST excl.)

Asat30 June2022, thebalance of Jo's debtors totalled $37,400 (GST excl.)

• Rita trades as a sole practitioner accountant. She does not have any employees and performs all her professional work herself. During the year,she received $176,5OO (GST exclusive) infees from clients.

Asat3OJune2021,thebalanceofRita'sdebtorstotalled$19,800 (GST excl.)

Asat3OJune2O22,thebalanceofRita'sdebtorstotalled$16,500 (GST excl.)

• Suetradesasacourier.Duringthe2021/22incomeyear,Suehad received$180,000fromclients(GSTexcl.).

Asat30June2021, thebalanceof Sue's debtors totaled$7,500(GST excl.)

Asat30 June2022,thebalance of Sue'sdebtors totaled $9,800 (GST excl.)

During theyear,Suehadwritten offbaddebtsof $2,OOO andhadallowed discounts for early payment of $1,000.

For each taxpayer, calculate their assessable income from conducting business forthe 2021/22 income year.