Sam and Sandra are in a partnership as retailers of SS Cosmetic goods. The partnership records, exclusive of GST, for the 2019-20 income tax year disclose:

Receipts ($):
200,000	Gross receipts from trading
Payments ($):
50,000	Purchases of trading stocks
20,000	Partners' salaries (each)
1,000	Interest on cash advance made to the partnership by Sam
30,000	Salaries for employees and rent paid
1,000	Legal expenses in recovering bad debts

Other details:

• Sam and Sandra share partnership profits and losses equally
• Trading stock on hand 1 July 2019: $5,000
• Trading stock on hand 30 June 2020: $10,000
• Sam's personal records disclose:

• Gambling winnings: $1,000
• Net salary as a part-time driver (excluding PAYG tax instalments of $2,500): $7,000
• Subscription to professional journals: $600

• Sam is a member of a private health fund.

Required:

Calculate the Net Partnership income and Sam's taxable income for the 2019-20 income tax year explaining your treatment of each item in this question and citing relevant legislation to support your answer.