Tax rates 2023-24 INDIVIDUAL RESIDENT Taxable income Tax on this income 0-$18,200 Nil $18,201 - $45,000 19c for each $1 over $18,200 $45,001 - $120,000 $5,092 plus 32.5c for each $1 over $45.000 $120,001 -$180,000 $29,467 plus 37c for each $1 over $120,000 $180,001 and over $51,667 plus 45c for each $1 over $180,000 The above rates do not include the: . Medicare levy of 2% COMPANIES . Small business entities - 25% . Other companies and entities - 30%Sports Goods Pty Ltd formed a partnership with Ronny 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 Ltd 60%, Ronny 20% and John 20%. The Partnership's Financial Accountant provided you with the following profit and loss statement. SPORTS GOODS PTY LTD, Ronny and John - PARTNERSHIP TRADING AS BUY RIGHT PROFIT AND LOSS - 30 JUNE 2023 Income: Sales 1,100,000 Government Grant 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 $780,000Gross Profit $395,000 H Expenses Employee Wages 50,000 Interest on Partnership loan 60,000 (note 2) Partner Salaries 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 $10,000Notes: . The partnership received an apprenticeship rebate from the government to assist with the cost of apprentices that the partnership currently employs. . Sports Goods Pty Ltd lent the partnership $1,000,000 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. . The accountant has taken up the following movements in the provision accounts: doubtful debts $35,000, long service leave $10,000 and accrued sick leave $10,000. . The partnership made a loss of $125,000 in the June 2022 year In addition to the above the following information has been provided: Sports Goods Pty Ltd has no other income for the June 2023 financial year. Sports Goods Pty Ltd has carried forward tax losses of $1,000 as at 1 July 2022. REQUIRED: Address the following and provide justification for your answer using legislation and case law where applicable: a) Calculate the Partnership's taxable income. (15 marks) b) Calculate Sports Goods Pty Ltd tax payable. (10 marks)