Sports goods PTY Limited formed a partnership with Rony and John to operate a wholesale business, selling electronics called buy right. The partnership agreement provides that the partnership is as follows sports goods PTY Limited 60%, Rony 20% and John 20%. The partnerships financial accountant, provided you with the following profit and loss statement.

Income

Sales $1,100,000

Government $75,000 ( note 1)

Total income $1,175,000

Cost of goods sold

Opening stock $80,000

Purchases $800,000

Closing stock $100,000

Total cost of goods sold $780,000

Gross profit $395,000

Expenses

Employees wages $50,000

Interest on partnership loan $60,000 ( note 2)

Partners salary for Michael and John $100,000

Rent $75,000

Electricity and water $45,000

Movement in provisions $55,000 ( note 3)

Total expenses, $385,000

Net profit $10,000

Notes

1. The partnership received an apprenticeship rebate from the government to assist with the cost of apprentices that the partnership currently employees.
2. Sports goods PTY limited lent the partnership $1 million so the partnership would not have to borrow from the bank to finance the purchase of stock. The $60,000 interest relates to this loan.
3. The accountant has taken up the following movements in the provisions accounts. Doubtful debts $35,000 , long service leave $10,000 and Accrued sick leave $10,000.
4. The partnership made a loss of $125,000 in the June 2022 year. In addition to the above, following information has been provided. Sports goods PTY Limited has no other income for the June 2023 financial year. Sports goods PTY Limited carried forward tax losses of $1000 as at first July 2022.

Required

Address the following and provide justification for your answer, using legislation and case law applicable

1. Calculate the partnership taxable income?
2. Calculate sports goods PTY Limited tax payable.